Mastering Purchases: A CFO’s Guide to By John Bostjancic
John Bostjancic narrates that as a CFO, you are important in directing the financial and strategic choices of your business. But choosing where to spend money can be difficult because there are so many projects competing for the minimal funds available. Some alternatives deliver more immediate profits, while others guarantee better corporate growth. In order to make wise decisions, how do you evaluate returns from various investments? By calculating ROI and examining both the investment's effectiveness and profitability, this article assists CFOs in determining if a given expenditure is beneficial. The definition of return on investment (ROI) One popular financial term for assessing the additional revenue produced by an investment is return on investment, or ROI. However, other expenses related to producing that revenue could not be covered by the investment amount. John Bostjancic explains that one would need to deduct the expenses of staff, materials, and other charges needed to...