This is due to the similarity of the indicators
Posted: Tue Jan 21, 2025 3:26 am
Total costs are the sum of fixed and variable costs.
Fixed costs = fixed portion of wages + rent and maintenance costs + depreciation charges + property taxes + advertising costs.
Variable costs = variable part of wages + cost of raw materials and supplies + cost of energy resources + costs of transporting products + variable part of commercial expenses.
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THE DIFFERENCE BETWEEN ROI, ROMI AND ROAS
ROI is often confused with ROMI, ROMI with ROAS, and vice versa. - in all cases, we calculate the return on investment. To understand the difference, let's look at how the indicators differ and compare the formulas.
ROI
ROI (Return on Investment) shows the level of return on all investments. The indicator helps determine how profitable the project is, taking into account all investments. This is a global indicator of business payback.
The ROI formula looks like this:
ROI = (income – investment) ÷ investment × 100
Fixed costs = fixed portion of wages + rent and maintenance costs + depreciation charges + property taxes + advertising costs.
Variable costs = variable part of wages + cost of raw materials and supplies + cost of energy resources + costs of transporting products + variable part of commercial expenses.
Want to know more about classic and modern marketing to improve your business promotion on the Internet? Learn to research the market, work with the product and its price, set goals and develop business belgium email list and projects with understanding.
Take the course "Internet Marketer" .
THE DIFFERENCE BETWEEN ROI, ROMI AND ROAS
ROI is often confused with ROMI, ROMI with ROAS, and vice versa. - in all cases, we calculate the return on investment. To understand the difference, let's look at how the indicators differ and compare the formulas.
ROI
ROI (Return on Investment) shows the level of return on all investments. The indicator helps determine how profitable the project is, taking into account all investments. This is a global indicator of business payback.
The ROI formula looks like this:
ROI = (income – investment) ÷ investment × 100