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- Performance Measurementaccounting-mcqs › cost-accounting-mcqs › performance-measurement
- Published
- 11 May 2023
- Last updated
- 28 May 2026
Which financial metric is determined by dividing income by investment?
Multiple choice question for Performance Measurement. Select an option, then review the explanation below.
Explanation
Return on investment (ROI) is calculated by dividing net income by the amount of investment, providing a measure of profitability relative to invested capital. The other options represent different financial ratios that do not involve this specific division.
More Performance Measurement MCQs
Practice related questions from the same subject.
- 1.How do you determine the total assets employed using total available assets and idle assets?
- 2.What are the formal information systems within organizations called that guide the company’s learning and focus on critical strategic matters?
- 3.Which financial metric is calculated by deducting the rupee value of the required return on investment from the income?
- 4.The economic value added (EVA) approach is a particular technique used to determine which of the following?
- 5.What represents the after-tax average expense of the capital a company utilizes over the long term?