<u>Return on Investment</u> is the compensation companies receive for purchasing capital assets.
Capital assets are significant pieces of property like houses, automobiles, rental properties, stocks, bonds, and even antiques or works of art. A capital asset for businesses is an asset with a useful life of more than a year that is not intended for sale during normal company operations.
Your investments in the business are the time and money you devote to strengthening your company. The profit you receive from your investments is the return. The ratio of net profit to the entire cost of the investment is how ROI is often defined.
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<u>Answer:</u>
<em>Purchased items or extracted materials that will be transformed into components or products are called (</em><u><em>A) Raw materials inventory
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<u>Explanation:</u>
Raw materials inventory is the complete expense of all segment parts at present in stock, which is not in use, therefore, a continuous process or completed stock creation. There are two subcategories of crude materials, which are direct materials. These are materials fused into the last item.
Raw materials may at times be announced out of date, perhaps because they are never again utilized in organization items, or because they have debased while away, thus can never still be used