In business when we talk about our ROI, then by this we mean our Return On Investment. Due to the reason that ROI tells a business person how successful they are so a savvy business person will want to know all about the ROI of a project. Usually ROI is just a matter of simple mathematics, although it a number of different factors can be involved in it.
Expenses having Zero ROI
Any expense that a company posses can be calculated in terms of ROI. It might be possible that some expenses may not have any direct ROI, or may be they have zero ROI. For instance, any revenue is not produced by expenses such as buying a new stapler, replacing a broken printer, or repainting a room, so these expenses don’t have any ROI. Due to this reason, to discuss these types of expenses ROI is not customarily used, even though they could be considered investments in the company.
