Using historical costs of assets in the ROI denominator is a mismatch of current revenues and costs

Question:

Using historical costs of assets in the ROI denominator is a mismatch of current revenues and costs in the numerator with the denominator. This problem may be corrected by using current costs in the denominator. No changes need be made to the numerator. How do you feel about this suggestion?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Cost Accounting

ISBN: 9780256069198

3rd Edition

Authors: Edward B. Deakin, Michael Maher

Question Posted: