Discuss the book values of assets

Assignment Help Accounting Basics

Reference no: EM131763715

Question: In calculating return on investment (ROI), the use of book values of assets-particularly fixed assets-in the ROI denominator

a. is the preferable method.

b. may cause a manager of a division with fully depreciated assets to be reluctant to replace the assets with more costly assets.

c. is required by generally accepted accounting principles.

d. may cause a manager of a division with fully depreciated assets to replace the assets with newer, more efficient, but more costly assets.

Reference no: EM131763715

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