Which of the following is a NOT a decision that management must make before calculating ROI and RI?
A)Should nonproductive assets be included in the average total asset calculation?
B)Should gross book value or net book value of assets be used?
C)Should a simple average of the beginning and ending total liabilities be used?
D)Should a short term focus be used?

Question

Quizplus · Accepted Answer

The decision of whether to use a simple average of total liabilities is not relevant to calculating ROI or RI. The other decisions listed – whether to include nonproductive assets, which book value to use, and whether to use a short term focus – all directly impact the calculation of ROI and RI.

Which of the Following Is a NOT a Decision That