Which of the Following Is the Formula for Calculating the Accounting

question 104

Multiple Choice

Which of the following is the formula for calculating the accounting rate of return for a capital asset?

• A)Average annual net cash inflow from asset/amount invested in asset
• B)Average annual operating income from asset/amount invested in asset
• C)(Average annual operating income + depreciation expense)/amount invested in asset
• D)(Average annual cash inflows - depreciation expense)/(amount invested in asset + residual value of asset)

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Definitions:

Idle Time

Periods when resources, such as machinery or employees, are available but not in use due to a lack of work or inefficient scheduling.

Kanbans

Signaling systems used in just-in-time (JIT) production processes to regulate the flow of materials between different stages of production.

Andons

Visual feedback systems used in manufacturing to alert about any status changes in production, such as issues or slowdowns.

Visual Workplace

A work environment where information about processes and standards is communicated through visual means to improve understanding and efficiency.