Which One of the Following Items Would Most Likely Not

question 116

Multiple Choice

Which one of the following items would most likely not be incorporated into the calculation of a division's investment base when using the residual income approach for performance measurement and evaluation? (CMA adapted)

• A) Fixed assets employed in division operations.
• B) Land being held by the division as a site for a new plant.
• C) Division inventories when division management exercises control over the amount of short-term credit used.
• D) Division accounts payable when division management exercises control over the amount of short-term credit useD.
• Land would be a strategic asset that is not controlled by the division manager.

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Definitions:

Computer Software

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The roles and operations of an economy, including production, distribution, and consumption of goods and services.

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The way in which prices of goods and services affect the supply and demand dynamics within a market, guiding the allocation of resources.

Collecting Taxes

The process by which a government or its authority gathers money from citizens and businesses in the form of taxes.