Accounting Rate of Return (ARR): LaGrange Corp

question 65

Multiple Choice

Accounting rate of return (ARR) : LaGrange Corp. has forecasted that over the next four years the average annual after-tax income will be $45,731. The average book value of the manufacturing equipment that is used is $167,095. What is the accounting rate of return?

• A) 33.3%
• B) 27.4%
• C) 29.8%
• D) 22.3%

Understand the concept of waste in JIT and methods for its reduction.

Comprehend the role of supplier and customer relationships in JIT systems.

Analyze and apply JIT, lean, and TPS theories and practices to improve operational efficiency.

Understand the factors affecting bond pricing and their relationship to market interest rates.