Annual earned income is divided from a project by capital invested to calculate __________?
Correct answer: A. accrual accounting rate of return
- A. accrual accounting rate of return
- B. returned working capital
- C. increase in expected average annual
- D. decrease in expected average annual
Explanation
The accounting rate of return is calculated by dividing average annual accounting profit or income by the capital invested, often expressed as a percentage. Hence option a identifies the correct measure.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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