Identify which of the following definitions of invested capital is not recommended for measuring the performance of division managers.
A) total assets less current liabilities
B) total assets employed
C) total assets less total liabilities
D) total assets

Question

Quizplus · Accepted Answer

Total assets less total liabilities represents equity, which is not a recommended measure for evaluating division managers' performance as it does not reflect the capital employed in operations.

Identify Which of the Following Definitions of Invested Capital Is