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
how does the cost of financial capital influence innovative research and development activities in a competitive market?
Marysya12 [62]

Because R&D initiatives are expected to yield a greater rate of return, businesses seek a huge quantity at a cheap cost.

<h3>What are the necessary finances?</h3>

To calculate your financial requirement, divide your anticipated family commitment by two and the cost of attendance (COA) for even a school (EFC). Although COA varies from university to university, your EFC does not change no matter which school you attend.

<h3>Which four necessities in terms of financial are there?</h3>

For the majority of Americans, job is the first step toward financial stability. People need revenue to meet expenditures and for budgetary considerations. They also must invest for the future, save cash for a rainy morning, borrow money to acquire assets, plus insure yourself against shocks.

To know more about financial visit:

brainly.com/question/1537763

#SPJ4

3 0
1 year ago
What are the main purposes of a budget?
disa [49]
In the context of business management, the purpose of budgeting includes the following three aspects:

•A forecast of income and expenditure (and thereby profitability)

•A tool for decision making

•A means to monitor business performance
7 0
3 years ago
Read 2 more answers
When vulnerabilities have been controlled to the degree possible, there is often remaining risk that has not been completely rem
Varvara68 [4.7K]

Answer:

Residual risk

Explanation:

Risk is generally defined as the likelihood that some harm can happen. In quantitative evaluations, risk is defined as the probability that some negative event happens . Residual risk is the threat that remains after all efforts to identify and eliminate risk have been made.   There are four basic ways of dealing with risk: reduce it, avoid it, accept it or transfer it. Since residual risk is unknown, many organizations choose to either accept residual risk or transfer it for example, by purchasing insurance to transfer the risk to an insurance company.  Residual risk is the remaining risk that exists after all hazard mitigation measures have been implemented or exhausted in accordance with the applicable safety requirements and the project risk management process.

3 0
3 years ago
The marketing director for Zap Games, a video game company, has informed his employees that he feels the company needs to improv
guapka [62]

Answer:

The correct answer is task.

Explanation:

The work environment is one of the most important elements for the proper functioning and growth of an organization. A positive work environment contributes to greater productivity and employee engagement. For this reason, it is extremely important that the work environment is adequate, pleasant and stimulating to achieve a motivated team of high productivity.

It is indisputable that the work environment is a key factor in work relationships, however, it is difficult to define it and to specify the characteristics that determine it. From the employee's point of view, the work environment is the set of conditions that contributes to achieving satisfaction in the workplace. From the perspective of the company, it can be defined as the sum of elements that influence the organizational climate, productivity and good performance of employees.

5 0
3 years ago
A local club is selling christmas trees and deciding how many to stock for the month of december. if demand is normally distribu
Ierofanga [76]

Answer:

.60

Explanation:

8 0
3 years ago
Other questions:
  • In commercial filmmaking, who is considered the "author" of a film?
    12·1 answer
  • Channing Corporation makes two products (A1 and B2) that require direct materials, direct labor, and overhead. The following dat
    10·1 answer
  • He difference between the largest and the smallest data values is the
    7·1 answer
  • Rick's wholesale office supplies prefers to handle its accounts receivable itself, but it also needs to use them to facilitate s
    6·1 answer
  • Jones Corp. reported current assets of $199,000 and current liabilities of $140,000 on its most recent balance sheet. The workin
    6·1 answer
  • Unavoidable fixed costs areA.relevant to the decision of whether to discontinue the department.B.irrelevant to the decision of w
    5·1 answer
  • The following data are available for the Northwestern Division of Dempsey, Inc. and the single product it makes. Average operati
    10·1 answer
  • fiona felt like there were not enough potential customers for her to earn a good living as a commission-based sales agent. there
    5·2 answers
  • Why might a business person purchase a fidelity bond?
    12·2 answers
  • What can happen if the framework you choose as a foundation does not fit your organization’s business objectives?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!