Which of these is an investment base that could be used in ROI and RI calculations?
A)original cost
B)written-down value
C)market value
D)all the options are possible investment bases for ROI and RI calculations

Question

Quizplus · Accepted Answer

All three options (original cost, written-down value, and market value) are possible investment bases for ROI (return on investment) and RI (residual income) calculations. The choice of investment base depends on the specific context and purpose of the analysis. For example, original cost may be useful for evaluating long-term investments or assets with a longer expected life, while market value may be more relevant for short-term investments or assets with high volatility. Written-down value, on the other hand, may reflect the current value of the asset after depreciation and may be useful for comparing different investment options. Ultimately, the choice of investment base should be consistent across all calculations to ensure a fair and accurate comparison.

Which of These Is an Investment Base That Could Be