Return on investment (ROI) is often expressed as follows: Income / Investment = Income / Revenue

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Return on investment (ROI) is often expressed as follows:

Income / Investment = Income / Revenue Ã— Revenue / Investment

Required

1. What advantages are there in the breakdown of the computation into two separate components?

2. Fill in the following blanks:

Return on investment (ROI) is often expressed as follows:
Income /

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Cost Accounting A Managerial Emphasis

ISBN: 978-0131495388

12th edition

Authors: Charles T. Horngren, Srikant M. Datar, George Foster

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Question Posted: Aug 31, 2016 09:52 AM

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Return on investment (ROI) is often expressed as follows: Income / Investment = Income / Revenue

Question:

Companies in Same Industry 1,000,000 S500,000 S 100,000 S50,000 S 500,000 Revenues Income Investment Income as a percentage of revenues Investment turnover ROI $5,000,000 0.5% 1%

Step by Step Answer:

1 Return on Investment ROI is one of the measures of financial performance of a company Income divid...View the full answer

Cost Accounting A Managerial Emphasis

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