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Transfer Prices
Prices at which divisions of the same company transact with each other, often set to allocate revenues and expenses among various subunits of the company.
Variable Cost
Expenses that change in proportion to the business activity or production volume.
Profit Margin
A financial ratio indicating the percentage of revenue that exceeds the costs associated with making or buying the goods sold.
DuPont Formula
A formula used to provide a detailed analysis of Return on Equity (ROE) by breaking it down into three major components: operating efficiency, asset use efficiency, and financial leverage.
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