Focus on the pronunciation of accounting rate of return
English definition of “accounting rate of return”
accounting rate of return
noun [C] (plural accounting rates of return) (abbreviation ARR) ACCOUNTING
› the amount of money you invest in a project divided by the amount of profit you expect to get from it. Accounting rates of return are used when choosing the best projects to invest in: In evaluating corporate performance an attempt will be made to link accounting rates of return to an internal rate of return.