What does the accounting rate of return measure?
A) The total profits expected from the project, expressed as a percentage of the average annual investment in the project.
B) The total profits expected from the project, expressed as a percentage of the initial outlay.
C) The average annual expected profit expressed as a percentage of the average funds invested in it.
D) The average annual expected profit expressed as a percentage of the initial outlay.

Question

Quizplus · Accepted Answer

The accounting rate of return measures the average annual expected profit as a percentage of the average funds invested in the project.

What Does the Accounting Rate of Return Measure