The Margin of Safety Is

question 73

Multiple Choice

The margin of safety is

• A)the number of units that need to be sold to achieve a profit target.
• B)the amount of units expected to be sold above the break-even level.
• C)the sales dollars needed to cover fixed costs.
• D)the use of fixed costs to extract higher percentage changes in profits as sales volume changes.

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Definitions:

Technological Advance

The development and application of new technologies and processes that improve efficiency, productivity, or performance.

Substitute

A second definition, phrased differently: An alternative product or service that consumers may opt for when the original is unavailable, too expensive, or of lower quality.

Important Resource

A critical asset or input used in the production of goods or services that significantly impacts an organization's or ecosystem's functionality.