accounting rate of return Meaning in the Cambridge English Dictionary Cambridge dictionaries logo

Meaning of “accounting rate of return” in the English Dictionary

"accounting rate of return" in Business English

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accounting rate of returnnoun [C]

uk   us   (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 ​evaluatingcorporateperformance an attempt will be made to ​linkaccountingrates of ​return to an ​internalrate of ​return.
(Definition of accounting rate of return from the Cambridge Business English Dictionary © Cambridge University Press)
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