M2 Is Comprised of

question 134

Multiple Choice

M2 is comprised of

Definitions:

Variable Expenses

Costs that vary in direct proportion to changes in a business activity's level, such as sales volume or production quantity.

Break-even Point

The point at which the amount of products sold or produced matches the total costs, leading to neither a profit nor a loss.

Margin of Safety

The difference between actual or expected sales and the breakeven sales, indicating the amount by which sales can drop before the business incurs a loss.

Percentage of Sales

A financial metric or method that relates various income statement accounts as a percentage of sales, often used for analysis or forecasting.