Which One of the Following Items Would Most Likely Not

Multiple Choice

Which one of the following items would most likely not be incorporated into the calculation of a division's investment base when using the residual income approach for performance measurement and evaluation?

A) Land being held by the division as a potential site for a new plant and parking lot.
B) Division inventories when division management exercises control over the inventory levels.
C) Division accounts payable when division management exercises control over the amount of short-term credit utilized.
D) Division accounts receivable when division management exercises control over credit policy and credit terms.