In computing the accounting rate of return,the ____ level of investment should be used as the denominator.

Name: In computing the accounting rate of return,the ____ level of investment should be used as the denominator.
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Question

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The average level of investment is used in the denominator when computing the accounting rate of return because it takes into account the depreciation of the asset over time, providing a more accurate reflection of the investment's performance throughout its useful life.

In Computing the Accounting Rate of Return,the ____ Level of Investment