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When Using the Historical Cost of Assets for Calculation of Return

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When using the historical cost of assets for calculation of return on investment, is it better to use the gross book value of the assets or the net book value of the assets ? Discuss.


Definitions:

Locus of Control

A psychological concept referring to the extent to which individuals believe they have power over events in their lives.

Value Orientations

The general principles or ideals that guide an individual's or a society's behavior and beliefs.

Industry

Pertains to the economic activity concerned with the processing of raw materials and manufacture of goods in factories, as well as the sector of the economy characterized by such activities.

Emotional Intelligence

The capability to recognize, understand, manage, and reason with emotions in oneself and others, crucial for effective interpersonal relations.

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