Which term below is best described as "a measure of profitability computed by dividing the average annual operating income by the amount of the investment?"

Question

Quizplus · Accepted Answer

The accounting rate of return is a measure of profitability that calculates the average annual operating income divided by the investment amount. This metric is often used in capital budgeting to evaluate the profitability of a project or investment. The other options (discount rate, internal rate of return, and net present value) are all related to capital budgeting as well, but do not specifically involve dividing operating income by investment amount.

Which Term Below Is Best Described as "A Measure of Profitability