Which of the following segment performance measures will decrease if there is an increase in the interest expense for that segment? Return on Investment, Residual Income
A) Yes Yes
B) No Yes
C) Yes No
D) No No
Choice A Choice B Choice C Choice D

Respuesta :

Return on funding (ROI) is an approximate measure of an investment's profitability. ROI is calculated by subtracting the initial price of the funding from its ultimate value, then dividing this new number by using the fee of the investment, and finally, multiplying it via 100.

What is ROI and why is it important?

ROI measures the amount of return on an investment associated to that investment's costs. It is used as phase of analytics and serves as a benchmark for shaping advertising strategies for the future. This permits you to determine what marketing systems are working and what areas can be improved.

What is the ROI formula?

The most frequent is internet earnings divided via the total cost of the investment, or ROI = Net earnings / Cost of funding x one hundred

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