_____ is the ratio of return to cost
A. bonus
B. Efficiency
C. profit
D. Morate
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Concept:
Return on Investment is often referred to as the returns on cost of a business. ROI ratio tells us what the investment in business has earned for a period of time.
Given:
Four options:
A. bonus
B. Efficiency
C. profit
D. Morate
To find:
Which one is the ratio of return to cost.
Solution:
Return to cost means the earnings which are done with respect to cost invested.
Out of the given options,
Profit is the difference between the revenues and the expenditure. So, it tells us how much has been earned on cost.
Therefore, the correct option is Profit.
Hence, the correct answer is (C).
The sentence will be ;
Profit is the ratio of return to cost.
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