Asked by
Jordon Robinson
on Nov 19, 2024
Verified
When used in return on investment (ROI) calculations, turnover equals sales divided by average operating assets.
Turnover
The rate at which inventory is sold or employees are replaced within a business or organization.
Operating Assets
Assets that are used for the day-to-day operations of a business, generating revenue and other operational benefits.
- Comprehend the role and repercussions of return on investment (ROI) in the judgment of managerial performance.
- Learn the computation of net operating income and its relevance in managerial accounting.
Verified Answer
VM
Learning Objectives
- Comprehend the role and repercussions of return on investment (ROI) in the judgment of managerial performance.
- Learn the computation of net operating income and its relevance in managerial accounting.