The return on investment is also known as _____________?
Correct answer: C. both a and b
- A. accrual accounting rate of return
- B. accounting rate of return
- C. both a and b
- D. nominal rate of return
Explanation
Return on investment is commonly called the accounting rate of return, and accrual accounting rate of return is a fuller name for the same accounting-based measure. Nominal rate of return is a different concept based on stated rather than inflation-adjusted returns.
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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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