The Use of Replacement Cost of Assets for Purposes of Calculating

question 48

Multiple Choice

The use of replacement cost of assets for purposes of calculating ROI has the advantage(s) of:

• A)Historical accuracy.
• B)Being a sound measure of the level of investment in a continuing business.
• C)Objectivity.
• D)Consistency with generally accepted accounting principles (GAAP).
• E)Avoiding the need for developing estimates of current cost.

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