Return on investment is used to evaluate
A)profit centers.
B)cost centers.
C)investment centers.
D)revenue centers.

Question

Quizplus · Accepted Answer

Return on investment (ROI) is used to evaluate investment centers, which are responsible for generating revenue and managing assets. ROI calculates the ratio of net profit to the amount of investment made, providing insight into the profitability and efficiency of the center's operations. Profit centers focus on generating profit, cost centers on managing costs, and revenue centers on generating revenue, but these centers may not involve significant investments and therefore do not require ROI analysis.

Return on Investment Is Used to Evaluate