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What is flushing and how does it occur?
Variable Cost Ratio
The proportion of variable costs to sales revenue, indicating how much variable cost changes with a change in the company's production volume.
Fixed Costs
Fixed costs, including rent, wages, and insurance expenses, stay the same no matter the production or sales volume.
Debt
An amount of money borrowed by one party from another, to be paid back with interest.
Shareholder Value
The worth delivered to shareholders due to management's ability to grow sales, earnings, and dividends over time.
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