Explore BrainMass

Explore BrainMass

    Accounting: ROCE vs ARR.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    ARR (Accounting rate of return) and ROCE (Return On Capital Employed) both look at profit and compare it to the cost of the assets used to generate the profit.

    However, they differ in one important way.

    What is this difference and what are the two used to measure?

    © BrainMass Inc. brainmass.com June 4, 2020, 1:24 am ad1c9bdddf
    https://brainmass.com/business/capital-budgeting/accounting-roce-versus-arr-397830

    Solution Preview

    The solution is presented in a Word document.

    The solution is clear and concise.

    Thank you.

    ARR (ACCOUNTING RATE OF RETURN) AND ROCE (RETURN ON CAPITAL EMPLOYED)

    ARR (Accounting rate of return) and ROCE (Return on Capital Employed) both look at profit and compare it to the cost of the assets used to generate the profit.

    However, they differ in one important way.

    Question:
    What is this difference and what ...

    Solution Summary

    The problem deals with evaluating the difference between return on capital employed and accounting rate of return.

    $2.19

    ADVERTISEMENT