Which of the Following Would Be an Argument for Using

question 122

Multiple Choice

Which of the following would be an argument for using the gross cost of plant and equipment as part of operating assets in return on investment computations?

• A) It is consistent with the computation of net operating income, which includes depreciation as an operating expense.
• B) It is consistent with the balance sheet presentation of plant and equipment.
• C) It eliminates the age of equipment as a factor in ROI computations.
• D) It discourages the replacement of old, worn-out equipment because of the dramatic, adverse effect on ROI.

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Definitions:

Majority Members

Individuals belonging to a group that represents the largest part of a population within a particular context or setting.

Male-Dominated Jobs

Occupations or industries where the majority of workers are male, often highlighting issues of gender inequality or segregation in the workplace.

Raters

Individuals who assess or evaluate the performance, qualities, or abilities of others in structured settings.

Attribution Errors

Cognitive biases that occur when individuals inaccurately attribute the causes of behaviors or events to internal or external factors.