One approach to measuring the short-term financial performance of a business unit considered an investment center is return on investment (ROI). ROI is expressed as operating income of the investment center:

Multiple Choice

• Divided by the assets used by the investment center.

• Divided by the current year's capital expenditures plus cost of capital.

• Minus the asset turnover (AT) of the investment center.

• Divided by fixed assets.

• Minus imputed interest charged for the use of invested capital by the investment center.