Final answer:
The performance ratio measuring how efficiently resources are used to generate profit in an organization is the return on investment (ROI) or profitability ratio.
Step-by-step explanation:
The performance ratio that measures the efficiency of the organization in terms of how well the resources of the organization have been used to generate profit is referred to as the return on investment (ROI) or profitability ratio.
The ROI is calculated by dividing the net profit (accounting profit) by the total assets or investment, expressing the efficiency of the use of capital in generating profits. Calculating the ROI involves addressing several aspects, such as average total cost, average profit, and the concept of economic profit, which includes both explicit and implicit costs.