Under Which of the Following Circumstances Is a Return on Investment

Multiple Choice

Under which of the following circumstances is a return on investment performance measure more likely to be misleading in comparing the performance of several divisions?

A) Inventories are valued on a FIFO costing basis.
B) Long-term assets are stated at current prices rather than at book value.
C) Long-term assets are stated at book value.
D) A division manager is over investing in assets that provide little contribution toward earnings.