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:

Leadership

The ability to guide, influence, or direct individuals or groups toward achieving set goals or objectives.

Equal Opportunity

Policies and practices that ensure all individuals have a fair chance to succeed without discrimination based on race, gender, age, and other personal characteristics.

Employee Inclusion

The practice of ensuring all employees feel valued and included in the workplace, regardless of their background, identity, or position.

Sex-Based Discrimination

Unfair treatment or bias against individuals based on their sex, affecting opportunities, rights, and status.