[SOLVED] Return on investment (ROI) is often expressed

Return on Investment

(ROI) is often expressed as follows:

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.

Transcribed Image Text:

Income Income Revenue Investment Revenue Investment Companies in Same Industry A B C Revenue $1,000,000 $500,000 ? $ 100,000 $ 50,000 $ 500,000 Income ? Investment ? $5,000,000 Income as a percentage of revenue ? ? 0.5% Investment turnover ? ? ROI ? 1% ?

Cost Accounting Definitions

ABC Classification Method

Accounting Rate of Return

Activity Based Costing

Annual Percentage Rate

Annuity

Arbitrary Allocation

Question: Return on investment (ROI) is often expressed

Transcribed Image Text:

Cost Accounting Definitions

View More Cost Accounting Definitions