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IN DETAIL Explain three approaches that can be used in order to improve ROI. The balanced scorecard contains...

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Operations Management

IN DETAIL

Explain three approaches that can be used in order to improveROI.

The balanced scorecard contains four dimensions. Please explaineach dimension and how they link to one another.

Answer & Explanation Solved by verified expert
4.3 Ratings (604 Votes)
Return on investment or ROI is the most common profitabilityratio There are many ways to determine ROI but the most commonlyused method is to divide net profit by total assetsROI is a common financial metric for evaluatingthe financial effects of individual investments and actions Manydifferent metrics are called by that name but the best known isthe simple ROIAs a cash flow metric ROI compares the magnitude and timing ofinvestment gains directly with the magnitude and timing of thecosts A high ROI implies that gains compare favorably tocostsROI is used as a general purpose metric for evaluation ofcapital acquisitions projects programs initiatives andtraditional financial investments in stock shares    See Answer
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