Which of the following is a measure commonly used to evaluate asset utilization?
A)return on investment
B)total revenue
C)market share
D)net income

Question

Quizplus · Accepted Answer

Return on investment (ROI) is a commonly used measure to evaluate asset utilization as it assesses the profitability of an investment relative to its cost, taking into account the amount of capital invested and the return on that investment. It is calculated as (Net Income/Total Assets) x 100%, and provides a way to evaluate how effectively assets are being used to generate profits. Total revenue, market share, and net income are not directly measures of asset utilization, and may not provide a complete picture of how efficiently assets are being used.

Which of the Following Is a Measure Commonly Used to Evaluate