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Anonymous A
on Jun 12, 2023
Global
Question about

Question on the ROI calculation

I wonder why we only include license costs rather than operating costs and salary in calculating the ROI.

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Profile picture of Cristian
on Jun 12, 2023
Most Awarded Coach on the platform | Ex-McKinsey | 88% verified success rate

Hi there, 

Yes, you could also include those. 

Don't take the suggested answers to these sort of cases as absolute truth. Instead, think of them as guidance. 

Seek instead to figure out how the suggested solution could improve your own rather than how it could replace it. 

Best,
Cristian

Profile picture of Ian
Ian
Coach
on Jun 12, 2023
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success

Hi there,

I agree with you. Based on my understanding of this case, you should indeed include operating costs and salary.

Anonymous B
on Sep 22, 2023

Hi there, 

I believe ROI looks at return i.e. profit on the initial cost only. Operational costs are not required for this formula. 

I hope this helps. 

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