Which Three of the Following Accurately Relate to the Use

question 14

Multiple Choice

Which three of the following accurately relate to the use of the accounting rate of return?

• A) The method of calculating the accounting rate of return has been standardised and is widely accepted.
• B) Accounting rate of return takes account of the time value of money.
• C) Practitioners use a variety of approaches when calculating the accounting rate of return.
• D) Accounting rate of return takes account of assets devoted to a project or business activity.

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Definitions:

Normal Accidents

The concept that in complex systems, accidents are unavoidable and inherent due to the intricate interactions and dependencies of system components.

Capital Investment

Money spent by a business entity to acquire or upgrade physical assets such as property, industrial buildings, or equipment to increase its long-term revenue.

Technical Experts

Individuals possessing specialized knowledge or skills in a specific field or technology, often consulted for their expertise.

Work Organization

The way in which work is structured and managed within workplaces, including the division of tasks, roles, and responsibilities.