Question
Discuss the motivation for excluding nonproductive assets from invested capital when computing return. What circumstances justify excluding intangible assets from invested capital? In addition, why
Discuss the motivation for excluding "nonproductive" assets from invested capital when computing return. What circumstances justify excluding intangible assets from invested capital? In addition, why must income used in computing return on invested capital be adjusted to reflect the capital base (denominator) used in the computation?
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Issues In Management Accounting
Authors: Trevor Hopper, Robert W. Scapens, Deryl Northcott
3rd Edition
0273702572, 978-0273702573
