The most commonly used financial performance measure that allows managers of one organization to compare performance with that of other organizations is:
A) gross profit margin.
B) the debt-to-assets ratio.
C) the days sales outstanding ratio.
D) the inventory turnover ratio.
E) return on investment.

Question

Quizplus · Accepted Answer

Return on investment (ROI)is the most commonly used financial performance measure because it allows managers of one organization to compare performance with that of other organizations.ROI lets managers assess an organization's competitive advantage.

The Most Commonly Used Financial Performance Measure That Allows Managers