the optimum combination and maximum utilisation of all the production powers (factors) present in the organisation, so that only the economically inevitable costs would remain in the organisation with the purpose to maximise the profitability of the organisation in the long term.

is only a measure in financial analysis for determining the yield on capital.

is about doing something at the lowest possible cost.

the relationship expressed as a percentage, between profits made during a specific period and the capital used to make the profit.