CCP Exam Dumps | Which of the following are used for profitability analysis in a construction company?

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AACEInternational.CCP.v2025-04-12.q75
Question 15

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Question 15/75

Which of the following are used for profitability analysis in a construction company?

A. Sum of years digits

B. Return on Investment (ROI) and Rate of Return (ROR)

C. Opportunity costs

D. Booked costs

Correct Answer: B

In a construction company, profitability analysis typically involves calculating the Return on Investment (ROI) and Rate of Return (ROR). ROI measures the profitability of an investment by comparing the gain from the investment to its cost, while ROR calculates the percentage return on each dollar invested. These metrics are critical in determining the financial performance and efficiency of investments in the construction industry.

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