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Discuss the motivation for excluding "nonproductive" assets from invested capital when computing return. What circumstances justify excluding...

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Accounting

Discuss the motivation for excluding "nonproductive" assets frominvested capital when computing return. What circumstances justifyexcluding intangible assets from invested capital? In addition, whymust income used in computing return on invested capital beadjusted to reflect the capital base (denominator) used in thecomputation?

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Discuss the motivation for excluding nonproductive assets from invested capital when computing return The Non productive Assets is an Asset which does not generate any output for the organization since no revenue or any other kind of income is earned by those assets Since the non productive assets does not contribute anything    See Answer
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Discuss the motivation for excluding "nonproductive" assets frominvested capital when computing return. What circumstances justifyexcluding intangible assets from invested capital? In addition, whymust income used in computing return on invested capital beadjusted to reflect the capital base (denominator) used in thecomputation?

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