The following information is available for the Peppercorn Company:

-One way to determine ROI is to multiply income percentage of revenue by
A) income percentage of revenue.
B) capital turnover.
C) residual income.
D) cost of capital.

Question

The following information is available for the Peppercorn Company:
 
-One way to determine ROI is to multiply income percentage of revenue by
A) income percentage of revenue. 
B) capital turnover. 
C) residual income. 
D) cost of capital.

Quizplus · Accepted Answer

Capital turnover is used in conjunction with income percentage of revenue to calculate ROI by showing how efficiently capital is used to generate revenue.

The Following Information Is Available for the Peppercorn Company