Concerning the impact on ROIC of capitalizing R&D,will increasing the asset life and/or the percentage of revenues spent on R&D increase ROIC?
A) Increasing either the asset life or the percentage of revenues spent on R&D will increase ROIC.
B) Neither increasing the asset life nor increasing the percentage of revenues spent on R&D will increase ROIC.
C) Increasing the asset life will increase ROIC,but increasing the percentage of revenues spent on R&D will not.
D) Increasing the asset life will not increase ROIC,but increasing the percentage of revenues spent on R&D will.
Correct Answer:
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