When Using Financial Performance Measures,which of the Following Statements Is

question 217

Multiple Choice

When using financial performance measures,which of the following statements is incorrect?

• A) Most companies use a weighted-average to determine the amount of average assets for ROI calculations.
• B) Average total assets are used for both ROI and RI computations.
• C) The limitations of financial performance measures reinforce the importance of the balanced scorecard.
• D) In general, calculating ROI based on the net book value of assets gives managers an incentive to continue using old, outdated equipment because its low net book value results in a higher ROI.

---

Definitions:

Withholding Per Pay Period

The amount of income tax an employer deducts from each paycheck, sent to the IRS on the employee's behalf, impacting the amount of potential refund or tax due.

Payroll Taxes Deposits

Payments made by employers to the IRS or other tax authorities for taxes withheld from employees' wages, including Social Security and Medicare taxes.

Lookback Period

The lookback period is a defined timeframe in the past during which certain events or transactions are reviewed for tax or regulatory compliance purposes.

TIN

Taxpayer Identification Number; a unique identifier assigned by the Internal Revenue Service or Social Security Administration to track taxpayers and accounts.