In Determining the Dollar Amount to Use for Operating Assets

question 70

Multiple Choice

In determining the dollar amount to use for operating assets in the return on investment (ROI) calculation,companies will generally use either net book value or gross cost of the assets.Which of the following is an argument for the use of net book value rather than gross cost?

• A) It is consistent with how assets are reported on the balance sheet.
• B) It eliminates the depreciation method as a factor in ROI calculations.
• C) It encourages the replacement of old,worn-out equipment.
• D) all of the above.

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Definitions:

Sense Of Identity

The awareness and understanding of one's unique characteristics, values, and affiliations, which define who they are as individuals.

Open Pane

A portion of the Johari Window model, representing information about oneself that is both known to the self and others.

Johari Window

A model used to improve understanding between individuals within a group by categorizing self-awareness and mutual understanding in four quadrants.

Good Qualities

Positive characteristics or traits that are deemed valuable and desirable.