Indicate Whether Each of the Following Statements About Return on Investment

Short Answer

Indicate whether each of the following statements about return on investment is true or false.
_____ a) Return on investment for a division is calculated by dividing net income by total assets.
_____ b) Using book value as the valuation base for calculating return on investment can distort ROI and cause motivational problems among managers.
_____ c) Using return on investment to make direct comparisons among organizational segments can result in inequities and motivational problems.
_____ d) Return on investment could be calculated based on historical cost or replacement cost for a division's assets.
_____ e) Return on investment can be calculated by dividing margin by turnover.