If ROI is used to evaluate a managers performance for a relatively new division, which of the
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If ROI is used to evaluate a manager’s performance for a relatively new division, which of the followingmeasures for assets (or investment) will increase ROI?
a. Gross book value used instead of net book value.
b. Net book value using accelerated rather than straight-line depreciation.
c. Gross book value used instead of replacement cost, if gross book value is higher.
d. Replacement cost used instead of liquidation value, if replacement cost is higher.
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Solution The correct choice from above is option d The replacement cost ...View the full answer
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Related Book For
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 9780135628478
17th Edition
Authors: Srikant M. Datar, Madhav V. Rajan
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