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    Business
  3. Study Set
    Management and Cost Accounting
  4. Exam
    Exam 13: Capital Investment Decisions: Appraisal Methods
  5. Question
    The Problem with the Accounting Rate of Return Is That
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The Problem with the Accounting Rate of Return Is That

Question 42

Question 42

Multiple Choice

The problem with the accounting rate of return is that it fails to consider the:


A) profitability of the project.
B) life of the project.
C) timing of cash flows.
D) effect on net income.

Correct Answer:

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