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:

Level Of Significance

A threshold in statistical hypothesis testing that determines when to reject the null hypothesis, commonly denoted as alpha (α).

Tenure Track

An academic employment path leading to tenure, a permanent position that provides job security and freedom from routine evaluations.

Human Resource

An organizational department focused on the management of employee-related processes including recruitment, selection, training, compensation, and performance assessment.

Adjunct

Something added to another thing but not an essential part of it, often referring to a non-tenure-track teaching position or faculty.