CONTROLLABILITY, COST Definition

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CONTROLLABILITY, COST is the financial policy of controlling, limiting or curbing the cost of materials, labor, and overhead.

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PROFITABILITY RATIOS are measures of performance showing how much the firm is earning compared to its sales, assets or equity.

FINANCIAL LEVERAGE is the use of debt to increase the expected return on equity. Financial leverage is measured by the ratio of debt to debt plus equity.

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