To evaluate overall aggregate performance,return on investment and residual income measures are more appropriate than return on sales.

Question

Quizplus · Accepted Answer

Return on investment (ROI) and residual income (RI) measures take into account both the profitability and efficiency of a business, while return on sales (ROS) only measures profitability. As a result, ROI and RI are better suited to evaluate overall aggregate performance since they provide a more comprehensive view of a business's financial performance.

To Evaluate Overall Aggregate Performance,return on Investment and Residual Income