Certified Meeting Professional (CMP) Practice Exam

Disable ads (and more) with a membership for a one time $4.99 payment

Study for the Certified Meeting Professional (CMP) Practice Exam. Prepare with flashcards and multiple-choice questions, each accompanied by hints and detailed explanations. Get ready for your CMP certification!

Practice this question and more.

What is the formula for calculating ROI percentage in a program evaluation?

Net monetary benefits divided by total income multiplied by 100
Net monetary benefits divided by costs multiplied by 100
Total costs divided by net monetary benefits multiplied by 100
Net income divided by gross revenue multiplied by 100

The correct answer is: Net monetary benefits divided by costs multiplied by 100

The correct formula for calculating ROI (Return on Investment) percentage in a program evaluation is found in the choice that indicates net monetary benefits divided by costs, multiplied by 100. This formula effectively measures the profitability or the returns relative to the costs incurred in the program. When you assess ROI, you seek to understand how much financial return is generated for each dollar invested. By dividing the net monetary benefits—essentially the profit or income generated after all expenses have been considered—by the total costs of the project or program, then multiplying by 100, you arrive at a percentage that represents the return on investment. This metric is crucial for evaluating the effectiveness and financial viability of a program. Other options present variations of ROI calculations but do not accurately reflect the traditional ROI formula used in program evaluation, thereby leading to different interpretations that would not yield a precise percentage of investment return.