An Investment Is Acceptable If Its Average Accounting Return (AAR)

question 26

Multiple Choice

An investment is acceptable if its average accounting return (AAR) :

• A)is less than a target AAR.
• B)exceeds a target AAR.
• C)exceeds the firm's return on equity (ROE).
• D)is less than the firm's return on assets (ROA).
• E)is equal to zero.

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Definitions:

Kanban Signals

Visual or electronic cues used in lean manufacturing and just-in-time (JIT) production environments to trigger the movement, production, or supply of parts in a manufacturing process.

Throughput

The rate at which a system generates its products or services over a given period of time.

Facility

A physical or virtual location where business operations occur, such as a factory, warehouse, office, or even software platforms.