Question: In calculating return on investment (ROI), the use of book values of assets-particularly fixed assets-in the ROI denominator
a. is the preferable method.
b. may cause a manager of a division with fully depreciated assets to be reluctant to replace the assets with more costly assets.
c. is required by generally accepted accounting principles.
d. may cause a manager of a division with fully depreciated assets to replace the assets with newer, more efficient, but more costly assets.