ACCOUNTING TERMS - ACCOUNTING DICTIONARY - ACCOUNTING GLOSSARY
From the web's #1 provider of financial analysis / ratio analysis
DEBT MANAGEMENT RATIO Definition
DEBT MANAGEMENT RATIO examine the degree to which a firm uses debt financing or financial leverages.
Learn new Accounting Terms
HURDLE RATE is a term used in the budgeting of capital expenditures meaning the REQUIRED RATE OF RETURN in a DISCOUNTED CASH FLOW analysis. If the expected rate of return on an investment is below the hurdle rate, the project is not undertaken. The hurdle rate should be equal to the INCREMENTAL COST OF CAPITAL.
DEVIATION is the departure from prescribed internal control. Often expressed as a rate at which the departure occurs.