Management in a key investment center of VR Industries achieved a return on investment of 18% in a recently concluded year. This fell short of the investment center's targeted ROI of 20%. The difference illustrates a(n):
A) Profit variance.
B) Sales volume variance.
C) Accounting return variance.
D) Line-item variance.

Question

Quizplus · Accepted Answer

The difference between the actual return on investment (ROI) of 18% and the targeted ROI of 20% is an example of an accounting return variance, as it directly relates to the financial performance measure of ROI.

Management in a Key Investment Center of VR Industries Achieved