QUESTION 40 Which of the following is NOT a limitation of using the accounting rate of return method for capital budgeting? a.Net income-on which the accounting rate of return method is based - is more objective than cash flow. b. The accounting rate of return method does not incorporate time value of money OC. The accounting rate of return method is based on accounting income, rather than cash flow. Od. The accounting rate of return method is subject to potential manipulation based on accounting choices made by management (e.g. method used to depreciate a capital asset)