The accounting return on investment technique is characterized by the fact that
A) it is simple to calculate.
B) it is based on actual cash flows received.
C) it takes into account the time value of money.
D) it is a relatively unpopular technique.

Question

Quizplus · Accepted Answer

The accounting return on investment technique is characterized by its simplicity in calculation. It is not based on actual cash flows received nor does it take into account the time value of money. Its popularity may vary depending on the industry or company.

The Accounting Return on Investment Technique Is Characterized by the Fact