The Accounting Rate of Return Is Calculated As

question 129

Multiple Choice

The accounting rate of return is calculated as:

• A) The after-tax income divided by the total investment.
• B) The after-tax income divided by the annual average investment.
• C) The cash flows divided by the annual average investment.
• D) The cash flows divided by the total investment.
• E) The annual average investment divided by the after-tax income.

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Definitions:

Service Department

An organizational unit that provides support services to other parts of an organization, rather than directly contributing to revenue generation.

Pediatrics Department

A specialized medical department dedicated to the care, diagnosis, and treatment of infants, children, and adolescents.

Employee Hours

The total number of hours worked by employees during a specific period, commonly used for payroll, scheduling, and productivity analysis.

Square Feet

A unit of area in the imperial measurement system, commonly used in real estate, architecture, and interior space planning.