Page 115 - MAC4861_2 Costing class slides part 2
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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%.
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