ocr: The Accounting. Rate ofReturn (ARR)Method ARR is analogous with the Return on Capital Employed (ROCE) ratio which we came across in module one as the primary protitability ratio. As with ROCE, ARR is concerned with: Pre-tax profit Capital employed Whereas ROCE is concerned with aggregate figures taken from the financial statements, ARR: is concerned only with the profits to be earned from a specitic project and with the capital empoyed on a specific project.
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