Before Applying ROI as a Control Measure,the Manager Must Answer

question 76

Multiple Choice

Before applying ROI as a control measure,the manager must answer the following question(s) :

• A)How does the firm measure revenues?
• B)What costs does the firm deduct in measuring divisional operating costs?
• C)How does the firm measure investment?
• D)All of the answers are correct.

Understand the concept of liquidity and classify assets by liquidity.

Calculate gross profit and understand its significance in financial analysis.

Calculate net sales and understand its impact on financial statements.

Determine and interpret the gross profit rate.

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