Ratio systems
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IGC-DEFINITION (abbreviated)
Ratio systems
Ratio systems are (mathematically or logically connected) combinations of ratios (absolute or relative figures with special significance). Ratios are derived from planned values or actual data and serve as a measurement to show the cause and effect of changes in operations. Under the entry ”objective” we have a ratio system structure, which can be used to compare budgeted and actual figures.
The Return on Investment ROI ROI-tree (see diagram) shows the return on investment (more precisely: return on operating assets) and the factors that influence it in an inter-linked pattern of accounting.
from: IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)
