Page 187 - 5.2 i. Manac Costing ITC Summarised Notes
P. 187
PERFORMANCE MEASUREMENT
ROI - example
Net operating assets R400 000
Net operating income R80 000
Minimum required rate of return 15%
Calculate the current ROI:
R80 000 / R400 000 = 20%
Therefore currently the company is performing well as they
have generated a return in excess of 15%.
187
