The return on investment measure may be biased in favor of divisions with older plant and equipment.

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The return on investment measure may be biased in favor of divisions with older plant and equipment.’’ Explain.

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Managerial Accounting An Introduction to Concepts Methods and Uses

ISBN: 978-0324639766

10th Edition

Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil

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Question Posted: Jun 04, 2012 12:18 AM

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The return on investment measure may be biased in favor of divisions with older plant and equipment.

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This statement may be correct depending on how ROI is calculated If assets are stated at acquisi...View the full answer

Managerial Accounting An Introduction to Concepts Methods and Uses

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