In Determining the Dollar Amount to Use for Operating Assets

question 59

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 these.

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Definitions:

CPU

Central Processing Unit acts as the core unit in a computer that handles the bulk of processing activities.

Primary Circuit Board

Also known as a motherboard, it is the main printed circuit board in computers and other complex equipment, housing the CPU, memory, and other crucial components.

CPU's

Stands for Central Processing Units, which are the primary components of computers responsible for interpreting and executing most of the commands from the computer's other hardware and software.

Kernel Speed

Refers to the efficiency or performance rate at which the core of a computer's operating system processes data or tasks.