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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%

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4 0
3 years ago
Edington Electronics Inc. produces and sells two models of pocket calculators, XQ-103 and XQ-104. The calculators sell for $14 a
iren2701 [21]

Answer:

In the question, we are not given information with respect to sales costs, so we can only find total gross sales:

Sales Budget fist 2 quarters of the year

Product  Sales Price  Sales Q1 Sales Q2  Total gross sales

XQ-103     $14             22,590    27,710      $704,200

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4 0
3 years ago
PA8.
notka56 [123]

Answer:

750

Explanation:

The number of units in finishing department at the end of the month shall be calculated as follows:

Number of units transferred=Starting wip inventory+units received from molding department-number of units at the end of month.

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Number of units at the end of month=700-2,150+2,200

                                                             =750

6 0
3 years ago
Why is there a difference between interest charged and interest earned? A)Banks are non-profit institutions.B)Banks are profit-m
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bogdanovich [222]

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Explanation:

Information Technology has enabled firms of all sizes and types to be able to access information that they need for themselves instead of having to rely on third-party providers that would provide data to them at a high cost.

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