Answer Happy

You are the Chief Accountant of Malay plc and haverecently been discussing divisional performance with threedivisional managers who are all highly ambitious, seeking promotionout of their divisions and whose performance is measured usingdivisional ROI. In particular, you have been discussing themeasurement of capital employed and accounting profit for newcapital investments. The divisions are treated as investmentcentres.
Which of the following proposals for the measurement ofcapital employed and accounting profit are the divisional managerslikely to put forward?
Capital employed
A. Gross book value
B. Net book value
Accounting profit
C. Profit after depreciation on a reducing balancebasis
D. Profit after depreciation on a straight linebasis