The Margin of Safety Ratio

question 9

Multiple Choice

The margin of safety ratio

• A)is calculated as actual sales divided by break-even sales.
• B)indicates what percent decline in sales could be sustained before the company would operate at a loss.
• C)measures the ratio of fixed costs to variable costs.
• D)is used to determine the break-even point.

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Definitions:

Behavior Control

The process of regulating or directing actions and responses to achieve desired outcomes.

Transference

In psychoanalysis, the process by which patients project feelings about significant people in their lives onto the therapist.

Projection

Projection is a psychological defense mechanism where individuals attribute their own undesirable thoughts, feelings, or motives onto someone else.

Feelings Toward

Emotional responses or attitudes an individual has about a particular thing or situation.