ISM Exam CPSM1 Topic 2 Question 84 Discussion

Actual exam question for ISM's CPSM1 exam

Question #: 84
Topic #: 2

The ratio of annual operating income to the total capital put in the business is called:

AReturn on investment

BReturn on asset

CProfit margin

DOperating efficiency

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Suggested Answer: A

by Stephaine at Apr 13, 2024, 01:24 AM

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11 days ago

Guys, guys, I've got a great mnemonic for this: 'ROI, ROA, and OP-EFF, which one will make me the best?'

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13 days ago

I dunno, man. 'Profit margin' also seems like it could be the answer. Gotta think this through carefully.

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14 days ago

Wait, wait, wait. Isn't it 'Operating efficiency'? That sounds more like the ratio we're looking for.

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15 days ago

Ooh, I think I've got this! Isn't it 'Return on investment'? That's the ratio of annual operating income to the total capital, right?

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17 days ago

Hmm, this is a tricky one. Return on investment and return on asset seem like viable options, but I'm not sure if they're quite the right fit.

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19 days ago

Ah, this question seems straightforward enough. I'm pretty confident I know the answer, but let's see what the others think.

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