Which of the Following Statements Regarding the Use of Historical

question 61

Multiple Choice

Which of the following statements regarding the use of historical costs and current costs to compute return on investment (ROI) is(are) true? (A) Historical costs are based on the original costs to acquire a long-term asset,while current costs represent the costs to replace the long-term asset.(B) For a specific multiple-period project,the return on investment (ROI) computed using current costs will generally be less than the ROI computed using historical costs.

• A) Only (A)is true.
• B) Only (B)is true.
• C) Both (A)and (B)are true.
• D) Neither (A)and (B)is true.

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Definitions:

Personal Preferences

Individual likes or choices regarding various aspects of life, shaped by personal experiences, beliefs, or innate tendencies.

Inductive Organization

A method of organization where specific examples or details are presented before leading to a general conclusion or statement.

Competing Values Framework

A model used to assess and categorize organizational culture and leadership based on conflicting values.

Market Culture

An organizational culture focused on competitive positioning and meeting market needs, characterized by a strong emphasis on results and customers.