accounting rate of return
noun[C]
ACCOUNTINGukuspluralaccounting rates of return(abbreviationARR)theamountofmoneyyouinvestin aprojectdividedbytheamountofprofityouexpectto get from it. Accountingratesofreturnare used whenchoosingthebestprojectstoinvestin:
Inevaluatingcorporateperformanceanattemptwill be made tolinkaccountingratesofreturnto aninternalrateofreturn.