Why Is Return on Investment Better Than Income as a Measure

Multiple Choice

Why is return on investment better than income as a measure of performance for an investment center?

A) The calculation for income is determined by GAAP, while return on investment is adjusted to meet the needs of the company.
B) Return on investment is easier to calculate than income.
C) Return on investment considers the amount invested as well as the income.
D) Return on investment is forward looking, while income is backward looking.