Which of the Following Statements Concerning the Return on Average

question 38

Multiple Choice

Which of the following statements concerning the return on average investment method of capital budgeting is incorrect?

• A) It is easy to use.
• B) It measures profit in the same way as the income statement.
• C) It considers profits over the useful life of the investment.
• D) It distinguishes between investments requiring an immediate payment of cash and those where payment is in the future.

---

Definitions:

Vacation

A period of time spent away from work or regular activities, usually for rest, recreation, or travel, to recharge and reduce stress.

ADEA Claim

A legal claim filed under the Age Discrimination in Employment Act, alleging discrimination based on an individual's age.

Downsizing

A reduction in a company's workforce to improve its financial performance or adapt to market conditions.

EEOC

The Equal Employment Opportunity Commission (EEOC) is a federal agency that administers and enforces civil rights laws against workplace discrimination in the United States.