In the formula for ROI idle plant assets are
A) included in the calculation of controllable margin.
B) included in the calculation of operating assets.
C) excluded in the calculation of operating assets.
D) excluded from total assets.

Question

Quizplus · Accepted Answer

Idle plant assets are not actively generating revenue and therefore are not included as operating assets in the ROI formula. Operating assets include only those assets that are used in the generation of revenue. Idle assets are excluded from the calculation of operating assets to ensure a more accurate reflection of the return on assets actually contributing to revenue generation.

In the Formula for ROI Idle Plant Assets Are