In an accounting measurement, income and investment is divided to calculate _________?
Correct answer: D. return on investment
- A. return on sales
- B. investment turnover
- C. residual income
- D. return on investment
Explanation
Return on investment is calculated by dividing income by the investment base, usually expressed as a percentage. Return on sales instead uses revenue as the denominator.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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