ARR Definition

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ARR is an acronym for Accounting Rate of Return.

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FIXED EXPENSES in the operation of a business are those expenses that remain the same regardless of production or sales volume, i.e. do not fluctuate with sales volume. Contrast with VARIABLE EXPENSES.

MARKETABLE CAPACITY is an assessment of total capacity compared to that capacity that sales projections indicate that the market can absorb. Dependent upon demand, the analysis will indicate whether the marketable capacity is at capacity, over capacity (inflationary), or under capacity (deflationary).

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