Which of these is an investment base that could be used in ROI and RI calculations?
A) All of the options are possible investment bases for ROI and RI calculations.
B) Original cost.
C) Net book value.
D) Current cost.

Question

Quizplus · Accepted Answer

All the options listed (original cost, net book value, and current cost) can be used as investment bases in the calculation of Return on Investment (ROI) and Residual Income (RI). The choice of investment base can affect the calculation and interpretation of these metrics, and different organizations may choose different bases depending on their specific accounting practices and the decision-making context.

Which of These Is an Investment Base That Could Be