Which of the Following Is a Reason Managers Use the Accounting

question 27

Multiple Choice

Which of the following is a reason managers use the accounting rate of return to evaluate potential investment projects?

• A)because debt contracts require that a firm maintain certain ratios that are not affected by income and long-term asset levels
• B)because it serves as a screening measure to ensure that new investments do affect key financial ratios
• C)because bonuses to managers may be based on accounting income and/or return on assets
• D)because it does not consider the time value of money

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Definitions:

Quality of Working Life

The degree of satisfaction employees feel about their job roles, considering factors like work environment, job security, compensation, and work-life balance.

Fatal Occupation Injuries

Incidents resulting in death that occur in the workplace or while performing work-related tasks.

Macho Culture

An organizational culture that emphasizes toughness, assertiveness, and male dominance.

Safety

The condition of being protected from harm or other non-desirable outcomes.