MANAGERIAL ACCOUNTING W/CONNECT
MANAGERIAL ACCOUNTING W/CONNECT
16th Edition
ISBN: 9781260586916
Author: Garrison
Publisher: MCG CUSTOM
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Chapter 11, Problem 4Q
To determine

Return on Investment (ROI)

Return on Investment is calculated as Margin divided by Turnover. Here Margin refers to the Sales Margin and Turnover refers to the Capital Turnover Ratio.

Return on Investment calculations are important from a business standpoint as they help in evaluation of new investment proposals, make or buy decisions, capital expenditure projects and whether to invest in a particular company or not.

Meaning of Margin and Turnover in ROI Calculations

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MANAGERIAL ACCOUNTING W/CONNECT

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