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P/V ratio shows the ______ ratio.
P/V ratio shows the ______ ratio.
پی وی تناسب ______ تناسب کو ظاہر کرتا ہے۔
Profit earning capability
Safety margin
Profit and Volume
None of these
Explanation
The
P/V ratio (Profit/Volume ratio)
measures the relationship between contribution and sales,
indicating how profit changes with sales.
A higher P/V ratio suggests
better
profitability and efficiency
in cost management.