Definitions for "Accounting rate of return"
Keywords:  roce, hca, cca, profit, outlay
Average operating profit ÷ average book value of assets, as a percentage.... more on: Accounting Rate of Return
A method of computing the profitability where the total cash inflow over the life of the project is reduced by expenses. This amount is divided by the estimated life of the project to arrive at an annual return. That's divided by the investment's cost. The result is an average rate of return. See Discounted Cash Flow.
The ratio of accounting profit to capital employed, also referred to as Return on Capital Employed (ROCE). The measure of capital employed can be either HCA or CCA.