Return on investment (ROI) is often expressed as follows: REQUIRED 1. What advantages are there in the
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REQUIRED
1. What advantages are there in the breakdown of the computation into two separate components?
2. Fill in the following blanks:
After filling in the blanks, comment on the relative performance of these companies as thoroughly as the data permit..
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Incone ncome Reye Kevenue Investment Revenue Investment Companies in Same Industry S1,000,000 $500,000 S 100,000 50,000 S500,000$5,000,000 Revenue Income Investment Income as a percentage of revenue Investment turnover ROI 0.5% 1%
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1 The separate components highlight several features of return on investment not revealed by a single calculation a The importance of investment turno...View the full answer
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Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
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