Which of the Following Is the Correct Formula for Calculating

question 118

Multiple Choice

Which of the following is the correct formula for calculating return on investment?

• A) Net profit / Sales
• B) Gross profit / Sales
• C) Operating income / Average total assets
• D) Earnings available to stockholders / Number of outstanding shares of stock

---

Definitions:

Statistical Measure

A quantitative value derived from a sample or population, representing characteristics such as mean, median, or standard deviation.

Errors

Differences between observed values and the true values in data collection, analysis, or estimation.

Defects

Imperfections or faults in a product or process that deviate from desired specifications or standards.

Population

The entire pool from which a statistical sample is drawn, often referring to a total set of observations that can be analyzed.