Which one of the following is an advantage of the average accounting return method of analysis?
A)easy availability of information needed for the computation
B)inclusion of time value of money considerations
C)the use of a cutoff rate as a benchmark
D)the use of pre-tax income in the computation
E)use of real, versus nominal, average income

Question

Quizplus · Accepted Answer

The advantage of the average accounting return method of analysis is easy availability of information needed for the computation. This method is simple and straightforward, making it easy to compute even for those who may not be financial experts.

Which One of the Following Is an Advantage of the Average