The accounting rate of return method of analyzing capital budgeting decisions measures the average annual rate of return from using the asset over its entire life
Indicate whether the statement is true or false
TRUE
Business
You might also like to view...
Explain how addictive consumption is a dimension of the "dark side" of marketing
What will be an ideal response?
Business
Which of the following is an example of an economic incentive to improve asset utilization?
a. Fixed costs are relatively easy to cover because not much capital is tied up in service facilities b. Incremental costs of extended hours may be covered by increased revenue and decreased crowding c. Advertising expenditures can be reduced because of the substantial increases in positive word-of-mouth d. Workers are relatively less expensive when they work more hours e. The cost to keep lights on and equipment running is not easily recouped by a few extra patrons.
Business