Which of the Following Statements Provide(s)an Argument in Favor of Including

question 85

Multiple Choice

Which of the following statements provide(s) an argument in favor of including only a plant's net book value rather than gross book value as part of operating assets in the ROI computation?
I.Net book value is consistent with how plant and equipment items are reported on a balance sheet.
II.Net book value is consistent with the computation of net operating income,which includes depreciation as an operating expense.
III.Net book value allows ROI to decrease over time as assets get older.

• A)Only I.
• B)Only III.
• C)Only I and II.
• D)Only I and III.

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Definitions:

Temperature Coefficient

A parameter that quantifies the change in a physical property of a material as the temperature changes.

Capacitance Change

A variation in the ability of a capacitor to store an electrical charge, affected by factors such as distance between plates, area of plates, and the dielectric material.

Variable Capacitors

Capacitors whose value can be changed.

Dielectric

An insulating material that can be polarized by an electric field, enhancing the capacitor's ability to store an electric charge.