Why do some companies use gross book value instead of net book value to measure a divisions

Question:

Why do some companies use gross book value instead of net book value to measure a division’s invested capital?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Managerial Accounting

ISBN: 9780073022857

7th Edition

Authors: Ronald W Hilton

See More Books

Question Posted: Mar 12, 2013 03:28 AM

See More Questions

Why do some companies use a special payroll bank account?
Why do some companies expense asset expenditures that are less than an established monetary amount?
Why do some companies in a given industry, like eCourier above, adopt and deploy innovative technologies while others in the same line of business do not? Break into small groups with your classmates...
Drag and drop the protocols from the bank to their respective layer on the OSI and TCP/IP Model. Not every layer will have protocols associated with it. Protocols TCP/IP Model OSI Model Application...
How many positive integers between 50 and 100 a) Are divisible by 7? Which integers are these? b) Are divisible by 11? Which integers are these? c) Are divisible by both 7 and 11? Which integers are...
For the circuit in Figure P22.20, find (a) the average power, (b) the maximum instantaneous power, (c) the minimum instantaneous power delivered to the capacitor. Use f 400 Hz, V max = 25 V, and C =...
Consider the National Football League data in Table B.1. Build a linear regression model relating the number of games won to the yards gained rushing by opponents $x_{8}$, the percentage of rushing...
Doorway Diffraction Sound of frequency 1250Hz leaves a room through a 1.0 D-m-wide doorway (see Exercise 36.5). At which angles relative to the centerline perpendicular to the doorway will someone...
Assume we live in a single-factor world, where the market is the only factor and assets are correctly priced. The expected market return is 6%, and the risk-free rate is 3%. Consider a risky...
1) Employees at a large computer company earn sick leave in one-minute increments depending on how many hours per month they work. They can then use the sick leave time any time throughout the year....
Distinguish between the following measures of invested capital, and briefly explain when each should he used: (a) Total assets (b) Total productive assets (c) Total assets less current liabilities.
Explain why it is important in performance evaluation to distinguish between investment centers and their managers.
For each of the following statements, either prove it is true or give a counterexample. a. If P(a | b, c) = P(b | a, c), then P(a | c) = P(b | c) b. If P(a | b, c) = P(a), then P(b | c) = P(b) c. If...
The strain tensor for a material is found to be 5 1 X = 14 2 -110- 2 -1 3 calculate the three principal strains?
A load of 5KN is to be raised using a steel wire. Find the min. diameter of the wire required to raise this load. Yield stress of steel is 300 MPa. Space Diagram steel wire diameter, d. 5KN Free Body...
At time t = 0, a particle is at rest in the x-y plane the coordinates (xo, Yo) = (4, 0) in. If the particle is then subjected to the acceleration components ax = 0.84 -0.51t in. /sec and ay = 0.14t -...
You are a project manager for a non-governmental organization project for improving employment opportunities for felons in a rural locality. The stakeholders are having hard time expressing their...
You have participated in several projects, and you are now very familiar with risk identification, risk analysis, risk response strategies, and risk monitoring. Because of your experience, your...
Given a data series that is normally distributed with a mean of 100 and a standard deviation of 10, about 99 percent of the numbers in the series will fall within: a. 60 to 140. b. 80 to 120. c. 70...
Express these numbers in standard notation. a. 2.87 10-8 b. 1.78 1011 c. 1.381 10-23
Which of the following is a traditional logistics driver of sourcing? Pricing Inventory Sourcing Information
From the following list of activity bases for an automobile dealership, select the base that would be most appropriate for each of these costs: (1) Preparation costs (cleaning, oil, and gasoline...
a. Name two principal types of cost accounting systems. b. Which system provides for a separate record of each particular quantity of product that passes through the factory? c. Which system...
a. Name two principal types of cost accounting systems. b. Which system provides for a separate record of each particular quantity of product that passes through the factory? c. Which system...
b. Using the inference rules show that S can be inferred if the following logical sentences are believed. 1. P 2. ZvH 3. Hv-P 5. H K 6. K (Sv-P) 7. (Z^-H)K 4. Sv(K) 8. (KA-Q) S Give your answer in...
1) Write a "C" program, which finds only a path (not all the paths) between two given cities according to the directed graph below. This program also calculates the distance between given these two...
How does MariaDB leverage optimizer enhancements such as Cost-Based Optimization (CBO), Index Condition Pushdown (ICP), and Histogram-Based Statistics to improve query execution efficiency and plan...

Why do some companies use gross book value instead of net book value to measure a divisions

Question:

Step by Step Answer:

The use of gross book value instead of net book value to measure a divisions inves...View the full answer

Managerial Accounting

Students also viewed these Accounting questions