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 regarding the calculation of average total liabilities is not necessary for the calculation of ROI and RI. The other options (including the consideration of nonproductive assets, the choice between gross and net book value, and the determination of a short term or long term focus) are important decisions that must be made prior to the calculation of ROI and RI.

Which of the Following Is a Not a Decision That