A Factor in Determining the Rate of Return on Investment--The

question 154

Multiple Choice

A factor in determining the rate of return on investment--the ratio of sales to invested assets--is called:

• A) profit margin
• B) indirect margin
• C) investment turnover
• D) cost ratio

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Definitions:

Gainsharing

A reward system where employees receive financial benefits from improvements in the company’s performance, encouraging collaboration and efficiency.

Gainsharing

A compensation strategy where employees receive bonuses based on the savings or gains achieved by their performance improvements, fostering collaboration and efficiency.

Gainsharing

A performance-based compensation strategy where employees are rewarded for contributing to improved operational efficiency, leading to cost savings which are shared with employees.

Compa-Ratio

A metric that compares an employee's salary to the midpoint of a salary range for their position, used to gauge how competitively they are being compensated.