The Accounting Return on Investment Technique Is Characterized by the Fact

question 18

Multiple Choice

The accounting return on investment technique is characterized by the fact that

• A) it is simple to calculate.
• B) it is based on actual cash flows received.
• C) it takes into account the time value of money.
• D) it is a relatively unpopular technique.

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Definitions:

Skimmed Milk

A dairy product from which almost all the fat has been removed.

Physical Units Method

An accounting approach used to allocate joint costs among products based on the number of physical units at a split-off point.

Joint Costs

Costs incurred in the process of producing two or more products before the point where these products are separately identifiable.

Skimmed Milk

Milk from which the majority of the fat content has been removed, resulting in a lower calorie option.