A factor in determining the rate of return on investment--the ratio of income from operations to sales--is called:
A) profit margin
B) indirect expenses
C) investment turnover
D) cost

Question

Quizplus · Accepted Answer

The ratio of income from operations to sales is known as profit margin, which is a crucial factor in determining the rate of return on investment. It represents the amount of profit generated by each dollar of sales and reflects the company's efficiency and profitability. Higher profit margins indicate that the company is managing its costs effectively and generating more income per dollar of sales, which can lead to higher returns on investment.

A Factor in Determining the Rate of Return on Investment--The