The proponents of gross book value maintain that it facilitates comparisons between years and between plants or divisions.

Question

Quizplus · Accepted Answer

Gross book value includes the total value of assets without accounting for any depreciation or amortization. This means that assets are recorded at their original cost, which makes comparisons between years and divisions easier since it eliminates the effect of depreciation or amortization. Therefore, the statement is true.

The Proponents of Gross Book Value Maintain That It Facilitates