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Is ARR the same as ROCE in terms of calculations? The BPP Study text defines the ROCE as Estimated average profits divided by the estimated average investment multiplied by 100% . This is similar to the formula used in the course notes and lectures. So is this the same ?
Yes – the two are the same.
In Financial Accounts it is more usually called ROCE. In Management accounts we tend to call it ARR 🙂
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