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The Accounting Rate of Return Is Calculated As

question 74

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The accounting rate of return is calculated as:


Definitions:

Plant Asset

Long-term tangible assets that are used in the production of goods and services, including machinery, buildings, and equipment.

Depreciable Cost

The total amount that can be depreciated over the life of an asset, typically the asset's cost minus its salvage value.

Salvage Value

The foreseen redemption value of an asset after its period of usability concludes.

Useful Life

The estimated time period that an asset is expected to be usable for its intended purpose.

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