AROE Definition

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AROE is Adjusted Return on Equity.

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CONTINGENT is a result that is determined by conditions or circumstances not yet established.

ACCOUNT ANALYSIS is a way to measure cost behavior. It selects a volume-related cost driver and classifies each account from the accounting records as a fixed or variable cost. The cost accountant then looks at each cost account balance and estimates either the variable cost per unit of cost driver activity or the periodic fixed cost.

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