Accountancy, asked by dipeshdlv, 5 months ago

under accounting rate of return method
what is taken into account

Answers

Answered by Anonymous

27

Accounting rate of return, also known as the Average rate of return, or ARR is a financial ratio used in capital budgeting. The ratio does not take into account the concept of time value of money. ARR calculates the return, generated from net income of the proposed capital investment. The ARR is a percentage return.

Answered by JasmineC

0

Answer:

the accounting rate of return formula is follow as: ARR =average annual profit / average investment

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