Question

18. A company has computed that their "ROI" is .28. Which of the following statements is...

18. A company has computed that their "ROI" is .28. Which of the following statements is the best interpretation of these results?

a. $.28 of every $1 invested in controllable assets is controllable income.

b. $.28 of every $1 made in controllable revenue is controllable income.

c. Every $1 invested in controllable assets generates $.28 in controllable revenue.

d. Every $1 invested in controllable assets generates $.28 of segment margin.

19. A company has computed that their "MARGIN" is .12. Which of the following statements is the best interpretation of these results?

a.

$.12 of every $1 invested in controllable assets is controllable income.

b.

$.12 of every $1 made in controllable revenue is controllable income.

c.

Every $1 invested in controllable assets generates $.12 in controllable revenue.

d.

Every $1 invested in controllable assets generates $.12 of segment margin.

20. A company has computed that their "TURNOVER" is 3. Which of the following statements is the best interpretation of these results?

a.

For every $3 of controllable revenue, $1 of controllable income is generated.

b.

For every $3 invested in controllable assets, $1 in controllable income is generated.

c.

For every $1 invested in controllable assets, $3 in controllable revenue is generated.

d.

For every $3 invested in controllable assets, $1 in controllable revenue is generated.
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Answer #1

Ques 18 The correct answer is A "$0.28 of every $1 invested in controllable assets is controllable income"

ROI = Return on investment i.e. Income earned as a percentage of assets

Ques 19 The correct answer is B "$0.12 of every $1 made in controllable revenue is controllable income"

Margin refers to the income earned as a percentage of sales

Ques 20 The correct answer is C "for every $1 invested in controllable assets, $3 in controllable revenue is generated

Turnover refers to asset turnover ratio i.e. Turnover/ Total assets

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