What effects do increases in plant assets have on ROI?
A)an increase in controllable margin which increases ROI
B)a reduction of ROI
C)an increase in ROI
D)Unable to determine without the dollar amount of controllable margin known.

Question

Quizplus · Accepted Answer

Increases in plant assets typically mean higher investment costs without an immediate proportional increase in profits, which can reduce the Return on Investment (ROI) since ROI is calculated by dividing net income by total assets.

What Effects Do Increases in Plant Assets Have on ROI