Question Detail

AMS 104 Past Questions AMS 104 1 Objective Question
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Question

Formula for ARR
Options
A Average income / Average cost
B Average income / Average value
C Average income / Average rate of return
D Average income / Average investment
Correct Answer
Correct Answer

Option D is the correct answer.

Detailed Explanation

Accounting Rate of Return (ARR) measures profitability from an accounting standpoint and is calculated as Average Income divided by Average Investment.

Hint

ARR compares accounting profitability to the money invested.

Question Info

Course: AMS 104
Topic: Past Questions AMS 104 1
Type: Objective
Difficulty: Not specified
Question 4 of 288
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