The Margin of Safety Is the Difference Between

question 10

Multiple Choice

The margin of safety is the difference between

• A)total revenue and total fixed costs.
• B)expected level of sales and the break-even point in revenue dollars.
• C)expected profit and profit at break-even.
• D)selling price and variable cost per unit.

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Definitions:

Negative Punishment

A behavior modification technique involving the removal of a desirable stimulus following an unwelcome behavior with the intention of decreasing that behavior's frequency.

Negative Reinforcement

A behavioral principle where the removal of an unpleasant stimulus following a desired behavior increases the likelihood of that behavior being repeated.

Positive Reinforcement

The addition of a rewarding stimulus following a behavior, intended to increase the likelihood of that behavior reoccurring.

Behaviorism

A branch of psychology that focuses on (relatively) simple explanations for outward behavior and is unconcerned with the inner workings of the mind.