Which of the Following Statements Regarding ROI Computations Istrue

question 110

Multiple Choice

Which of the following statements regarding ROI computations istrue?

• A) Net income after interest and taxes is most frequently used as the measure of income in the ROI formula.
• B) The fair market value of assets without regard to depreciation is used as a measure of operating assets in the ROI formula.
• C) Assets used in the ROI formula are generally measured as an average of beginning and end of period numbers.
• D) All assets, including those that are idle or held for resale, are included in the ROI formula.

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Definitions:

Primary Value Chain

The sequence of activities an organization undertakes to develop, produce, and sell its products or services, generating value for customers.

Production Function

An economic model expressing the relationship between inputs (like labor, capital) used in production and the output of those production processes.

Differentiation

The process of distinguishing a product or service from others, to make it more attractive to a particular target market.

Product Innovation

The development of new or significantly improved goods or services to meet consumer needs or market demands.