Difference between revisions of "Return on investment"
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According to the [[BABOK Guide|BABOK Guide (3rd edition)]], | According to the [[BABOK Guide|BABOK Guide (3rd edition)]], | ||
:[[Return on investment]] ([[ROI]], [[business analysis]]). A measure of the profitability of a project or investment. | :[[Return on investment]] ([[ROI]], [[business analysis]]). A measure of the profitability of a project or investment. | ||
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| + | According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | ||
| + | :[[Return on investment]] ([[ROI]]). An accounting measure of income divided by an accounting measure of investment. See also accrual accounting rate of return method. | ||
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==Related lectures== | ==Related lectures== | ||
*[[Controlling Quarter]]. | *[[Controlling Quarter]]. | ||
| − | [[Category: Septem Artes Administrativi]][[Category: Articles]][[Category: Quality Management]][[Category: Business Analysis]] | + | [[Category: Septem Artes Administrativi]][[Category: Articles]][[Category: Quality Management]][[Category: Business Analysis]][[Category: Accounting]] |
Revision as of 13:23, 11 July 2020
Return on investment (also well known by its acronym, ROI; hereinafter, ROI) is the ration that is used to evaluate the efficiency of an investment in finance and economics.
Definitions
According to Juran's Quality Handbook by Defeo (7th edition),
- Return on investment (ROI). The ratio of the estimated gain to the estimated resources needed.
According to the BABOK Guide (3rd edition),
- Return on investment (ROI, business analysis). A measure of the profitability of a project or investment.
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Return on investment (ROI). An accounting measure of income divided by an accounting measure of investment. See also accrual accounting rate of return method.
