Asked by Elizabeth Steinke on Jul 27, 2024
Verified
ROI and residual income can be used as performance measures.
Residual Income
Operating income that remains after deducting all required costs of capital from net operating profits, often used in performance measurement.
ROI
ROI, or Return on Investment, measures the efficiency or profitability of an investment by dividing the net profit from the investment by the initial cost of the investment, typically expressed as a percentage.
- Absorb the essence of Return on Investment (ROI) and the technique by which it is quantified.
- Grasp the concept and calculation of residual income.
Verified Answer
QG
Quneshial GivensJul 31, 2024
Final Answer :
True
Explanation :
ROI (Return on Investment) and residual income are both financial metrics used to assess the performance of investments or business segments, and the data provided includes elements (such as net operating income and average operating assets) that are relevant for calculating these measures.
Learning Objectives
- Absorb the essence of Return on Investment (ROI) and the technique by which it is quantified.
- Grasp the concept and calculation of residual income.