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Hello Sir,
While calculating ROI if in question we have given opening figures of BS and closing as well.. and just asked to calculate ROI/ROCE ..which figure should we take? should we average it or what ?
There is no rule in ‘real life’ – there are arguments for all of them. In the exam it depends what information is available and any rule specfically given in the question.
If no rule is given then use the opening capital employed (on the basis that that is what will have earned the profits for the year).
Okayyy.. got it .. Thanks
You are welcome 🙂