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Under which of the following circumstances is a return on investment performance measure more likely to be misleading in comparing the performance of several divisions?
Under which of the following circumstances is a return on investment performance measure more likely to be misleading in comparing the performance of several divisions?
Select one:
A. A division manager is over investing in assets that provide little contribution toward earnings.
B. Long-term assets are stated at current prices rather than at book value.
C. Inventories are valued on a FIFO costing basis.
D. Long-term assets are stated at book value.
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