
December 5th, 2011, 05:31 AM
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Permanently Banned
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Join Date: Nov 2011
Location: Ahmedabad
Posts: 10
Time spent in forums: 2 h 13 m 54 sec
Warnings Level: 10
Number of bans: 1
Reputation Power: 0
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You Are Right but Keep in mind that the calculation for return on investment and, therefore the definition, can be modified to suit the situation -it all depends on what you include as returns and costs. The definition of the term in the broadest sense just attempts to measure the profitability of an investment and, as such, there is no one "right" calculation.
For example, a marketer may compare two different products by dividing the gross profit that each product has generated by its respective marketing expenses. A financial analyst, however, may compare the same two products using an entirely different ROI calculation, perhaps by dividing the net income of an investment by the total value of all resources that have been employed to make and sell the product.
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