Ross Company uses net book value as a measure of invested capital when computing ROI. A division

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Ross Company uses net book value as a measure of invested capital when computing ROI. A division manager has suggested that the company change to using gross book value instead. What difference in motivation of division managers might result from such a change? Do you suppose most of the assets in the division of the manager proposing the change are relatively new or old? Why?

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Introduction to Management Accounting

ISBN: 978-0133058789

16th edition

Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta

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