1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tekilochka [14]
3 years ago
15

Which of the following formulas is used to compute the accounting rate of return?

Business
1 answer:
tekilochka [14]3 years ago
5 0

Answer:

Option (A) is correct.

Explanation:

Accounting rate of return is determined to take the efficient business decision related to the capital budgeting and it tell us whether to accept the proposal or not. The following is the formula:

Accounting rate of return = (Average Income ÷ Initial Investment)

For example:

Net profit for 3 years are as follows:

2012 - 13 = $50 million

2013-14 = $100 million

2014-15 = $150 million

Initial investment = $200

Average profit = ($50 + $100 + $150) ÷ 3

                        = $100

Accounting rate of return = (Average Income ÷ Initial Investment)

                                          = $100 ÷ $200

                                          = 0.5 or 50%

You might be interested in
The impact of increasing, as opposed to constant, costs is to Multiple Choice expand the limits of the terms of trade. intensify
Elden [556K]

Answer:

cause the bases for further specialization to disappear as nations specialize according to comparative advantage

Explanation:

Comparative advantage refers to the advantage while producing the goods and services at a lower cost compared with the competition or rivals in order to gain the maximum share in the market place

Now if there is an increased as compared with the constant so the impact would affect the basis for additional specialization to invisible as the nations specialized as per the comparative advantage

3 0
3 years ago
A security firm is offered $80,000 in one year for providing CCTV coverage of a property. Thecost of providing this coverage to
e-lub [12.9K]

Answer:

contract s not acceptable

Explanation:

Given data:

worth of CCTV coverage contract = $ 80,000

Coverage Cost   = $ 74,000

Interest rate = 8.5%

Present value of the CCTV coverage is PV

PV = \frac{$ 80,000}{1.0850} = $ 73,732.72

As we can see from above calculation that present value of receivable amount is less than  current cost, hence the contract is not acceptable

5 0
3 years ago
Assume that a 4 percent decrease in income results in a 6 percent increase in the quantity demanded of a good. The income elasti
Drupady [299]

Answer: The correct answer is "a. negative, and the good is an inferior good.".

Explanation: Assuming that a 4 percent decrease in income results in a 6 percent increase in the quantity demanded of a good, the income elasticity of demand for the good is negative because the good is an inferior good.

Inferior goods are those material elements that are related to the consumption of people who have lower incomes and who cover their basic needs.

Its income elasticity coefficient is negative. Therefore, when the consumer's income increases, the demand for these goods decreases because the consumer can choose other higher quality products..

3 0
3 years ago
Read 2 more answers
Dana spends several hours researching prices and online reviews of t-shirts for a school
Sunny_sXe [5.5K]

Answer:

B. The time spent on the task

Explanation:

The time that Dana spends carrying out her task is a cost to her.  That cost can be calculated by ascertaining the gains or benefits she has missed due to the research.

If Dana were not doing the research, she would be engaged in other activities. Those activities could have been of benefit to her, be it financially or otherwise. The benefits foregone are the cost of Dana doing the research.

8 0
3 years ago
create a persuasive email to Mrs. Jarrett and Mrs. Haynes about recruiting graduating seniors to come work for you this summer.
Assoli18 [71]

Answer:

yoo my jym teacher name is mr haynes

Explanation:

omgirwkms if u can read that u need a hug

7 0
3 years ago
Other questions:
  • Why might a broker look at world news and financial data?
    9·1 answer
  • Which of the following is NOT a core component of the Federal Reserve Bank?
    7·1 answer
  • Joe spends $20,000 during his two semesters in college on rent, food, books, tuition, and entertainment. Joe’s opportunity cost
    10·1 answer
  • Davidson Electronics has the following: Units Unit Cost Inventory, Jan. 1 5,000 $ 8 Purchase, April 2 15,000 10 Purchase, Aug. 2
    5·1 answer
  • Emphasis on product, sales-volume-oriented, needs of seller Customer wants, profit-oriented, future growth Sales-volume-oriented
    15·1 answer
  • Type the correct answer in the box. Spell all words correctly. Who plans, codes, and creates web pages? plan, code, and create w
    9·1 answer
  • Which act allows employees claiming discrimination to treat each receipt of a paycheck as an instance of discrimination for purp
    8·1 answer
  • I need help with these questions.
    11·1 answer
  • Like a good economist, you calculated the opportunity cost of getting your college degree. Suppose that at your university, you
    12·1 answer
  • Flintstone Enterprises prepared the following cash budget for June: Cash receipts: $312,000 Cash disbursements: $274,000 Short-t
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!