Methods of Controlling and Improving the Rate of Return on Investment
Methods of Controlling and Improving the Rate of Return on Investment explains that Return on investment is normally used to judge the managerial performance in an investment center.Managers therefore try to control and improve the ROI of their investment center. Here we shall discuss the methods of improving rate of return on investment. The following formula is usually used for computing return on investment.
Return on investment (ROI) = Net operating income / Average operating income