[amp_mcq option1=”Net profit ratio * Capital turnover ratio” option2=”Operating net profit ratio * Shareholders fund” option3=”Net profit\/Sales” option4=”Cost of sales\/Capital employed” correct=”option3″]<\/p>\n
The correct answer is C. Net profit\/Sales.<\/p>\n
Return on investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments. ROI tries to directly measure the amount of return on a particular investment, relative to the investment’s cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment. The result is expressed as a percentage or a ratio.<\/p>\n
Net profit is the total revenue of a company minus all expenses, including taxes. Sales is the total amount of money that a company brings in from selling its products or services.<\/p>\n
Option A is incorrect because the net profit ratio is calculated by dividing net profit by sales. The capital turnover ratio is calculated by dividing sales by capital employed.<\/p>\n
Option B is incorrect because the operating net profit ratio is calculated by dividing operating profit by sales. Shareholders fund is the total amount of money that shareholders have invested in a company.<\/p>\n
Option D is incorrect because cost of sales is the total cost of goods sold by a company. Capital employed is the total amount of money that a company has invested in its assets.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Net profit ratio * Capital turnover ratio” option2=”Operating net profit ratio * Shareholders fund” option3=”Net profit\/Sales” option4=”Cost of sales\/Capital employed” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-47848","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n