What Is the Major Advantage of the Accounting Rate of Return

question 5

Essay

What is the major advantage of the accounting rate of return relative to the other techniques that can be used to evaluate capital projects?

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Definitions:

Operations Manager

A role responsible for overseeing, designing, and controlling the process of production and redesigning business operations in the production of goods and services.

OM Function

Operations management function, which involves the responsibility for planning, organizing, and supervising the processes that produce a company's goods or services.

Money Transfers

The process of moving funds from one account or individual to another, through various methods such as electronic transfers, wire transfers, or checks.

Multifactor Productivity

Indicates the ratio of the goods and services produced (outputs) to many or all resources (inputs).