Which of the Following Statements Provide(s) an Argument in Favor

question 26

Multiple Choice

Which of the following statements provide(s) an argument in favor of including only a plant's net book value rather than gross book value as part of operating assets in the ROI computation?
I. Net book value is consistent with how plant and equipment items are reported on a balance sheet.
II. Net book value is consistent with the computation of net operating income, which includes depreciation as an operating expense.
III. Net book value allows ROI to decrease over time as assets get older.

• A)Only I and III.
• B)Only I and II.
• C)Only I.
• D)Only III.

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Definitions:

Predict

The ability to accurately forecast future events or trends based on current or past information.

Diverse Work Force

An employment group that consists of members from varied backgrounds, ethnicities, ages, genders, and other demographic variables.

Supervising

Involves overseeing and directing the work and activities of others, ensuring tasks are completed effectively and efficiently.

Homogeneous

Consisting of parts or elements that are all of the same kind; not heterogeneous.