The Accounting Rate of Return Equals

question 97

Multiple Choice

The accounting rate of return equals:

• A) (average incremental revenue - average incremental expenses including depreciation) / average investment.
• B) (average incremental revenue - average investment) / average incremental expenses.
• C) (average investment - average incremental income) / average investment.
• D) (average investment - average incremental income) / average incremental income.

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Definitions:

Compensation Structure

The system of pay and benefits used by an organization to reward its employees.

Prestigious

Describes something esteemed or honored, often associated with high status or quality.

Dangerous

Refers to something that is likely to cause harm or poses a risk to safety.

Desirable Location

A geographic area considered attractive for living or business activities due to various factors such as accessibility, environment, or economic opportunities.