The gross cost of operating assets when calculating roi preferable to using the net book value the gross cost of operating assets when calculating roi preferable to using the net book value because it ignores accumulated depreciation, stays constant over time and does not make ROI grow automatically over time.
The full form of ROI is Return on Investment. It is calculated through a ratio between net income and investment. A high ROI defines the investment's gains compare favorably to its cost.
Moreover, "return on investment" is the best measure of the efficiency of an investment, but it should be noted that there are other indicators of how well an investment is doing.
Adding to it, using gross cost the operating asset include cash, accounts receivable, prepaid assets and buildings etc.
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