The return on investment is also known as _____________?
Correct answer: D. both a and b
- A. accrual accounting rate of return
- B. accounting rate of return
- C. nominal rate of return
- D. both a and b
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.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
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.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
If the required rate of return is 13%, operating income is $375000 and the total investment is $2650000, then the residual income would be ____________?
An operating income is divided by the revenues to calculate ______________?
If the operating income is $5650000 and the revenue is $68558000, then the return on sales will be ___________?
The system in an organization, which defines behavior standards and code of conduct is known as ___________?
The return on sales is multiplied to investment turnover to calculate ___________?
The measures that analyze the performance of a company, such as residual income, economic value added and customer satisfaction are collectively called ____________?