How Does the Accounting Rate of Return Differ from the Return

question 120

Multiple Choice

How does the accounting rate of return differ from the return on investment formula?

• A)They are not different;both are calculated by dividing net operating income by initial investment.
• B)The numerator in each formula differs;accounting rate of return divides net operating income by initial investment,and return on investment divides gross operating income by initial investment.
• C)The numerator in each formula differs;accounting rate of return divides net operating income by average invested assets,while return on investment divides gross operating income by average invested assets.
• D)The denominator in each formula differs;accounting rate of return divides net operating income by initial investment,while return on investment divides net operating income by average invested assets.

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Definitions:

Central Goals

The primary objectives that guide the actions and initiatives of an individual, group, or organization.

Agency

The capacity of individuals or groups to act independently and make their own free choices, impacting their lives and the world around them.

Force Field Analysis

A management technique developed by Kurt Lewin, used to identify the forces that support or oppose a particular decision or change.

Political Strategy

Political strategy refers to the planned course of action or tactics employed by individuals, groups, or organizations to influence political decisions or achieve specific political outcomes.