Which of the following is not an option in deciding how to incorporate depreciable fixed assets in measuring divisional investment?
A)Net book value.
B)Gross book value.
C)Transfer price.
D)Replacement cost of the asset.
E)Current value of the asset.

Question

Quizplus · Accepted Answer

Transfer price is not relevant to the measurement of divisional investment and therefore not an option when deciding how to incorporate depreciable fixed assets. The remaining options of net book value, gross book value, replacement cost, and current value are all valid options for measuring divisional investment.

Which of the Following Is Not an Option in Deciding