The best measure of managerial efficiency in the use of investments in assets is:
A) rate of return on stockholders' equity
B) investment turnover
C) income from operations
D) inventory turnover

Question

Quizplus · Accepted Answer

Investment turnover measures how efficiently a company is using its investments in assets to generate revenue. A higher investment turnover ratio indicates better managerial efficiency in using assets to generate revenue, making it the best measure of managerial efficiency in the use of investments in assets. The other options may provide some information on efficiency, but they do not directly measure how well the company is using its investments in assets.

The Best Measure of Managerial Efficiency in the Use of Investments