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Return on Investment (ROI) Is a Widely Used Financial Metric

Question 46

Multiple Choice

Return on investment (ROI) is a widely used financial metric but suffers from the following weakness:


A) it includes variable costs and excludes fixed costs
B) it omits certain financial measures including sales returns
C) intangible benefits such as innovation are not captured in ROI
D) revenues, expenses and assets are difficult to calculate making ROI subject to error
E) none of the above

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