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Return of investment is an essential aspect of the business. Keeping track of ROI is crucial for success with all your marketing activities. The benefit of tracking ROI(Return on investment) is that the business managers can track what marketing strategies are working for them and what processes need revamping. Every marketer feels pressure to prove the effectiveness of their marketing expenses.

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Digiligo

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2y ago

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What is meaning of ROI in accounts?

ROI In Accounts Stands for either " RATE OF INTEREST" or " RETURN ON INVESTMENTS"according to the reference given


Is it possible for ROI to decrease if net income increases?

yes


What does roi mean in spanish?

It meas (REI) Retorno en Inversion


What is meant by depreciation in ROI measurement?

Depreciation in ROI measurement refers to the reduction in the value of an asset over time due to wear and tear, obsolescence, or age. In calculating ROI, depreciation is accounted for as an expense, which reduces the net income generated by the asset. This adjustment helps provide a more accurate picture of the investment's profitability, reflecting the true economic benefit after considering the asset's diminishing value. Properly factoring in depreciation ensures that ROI calculations are aligned with the actual performance and cost of the investment.


What is disadvantage of roi?

The main disadvantage is that you are using a profit figure which could be wildly inaccurate - if that figure is inaccurate, then the ROI figure is also inaccurate. Another disadvantage is that it doesn't take into account how large the investment is - it gives you a percentage, and this percentage will be the same whether you are talking about a few pounds or millions of pounds. For example, if you look at project A and project B, and they both have an ROI of 15%, but project A requires an investment of £1000, and project B requires £10, then obiously you will make more money from project A, but ROI doesn't tell you this.