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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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