The Margin of Safety Is

question 48

Multiple Choice

The margin of safety is:

• A) The difference between estimated sales and breakeven sales.
• B) Not a useful measure for management in understanding the risk associated with a product line.
• C) The amount sales can drop before the target profit is met.
• D) How far sales must increase to earn a profit.

Calculate total job costs and unit product costs using job-order costing data.

Understand the role of fixed and variable manufacturing overhead costs in job-order costing.

Recognize the impact of using single plantwide predetermined overhead rates versus department-specific rates.

Calculate and understand selling prices based on manufacturing costs and markup percentages.

---

Definitions:

Envelope/Scenario Forecasting

A forecasting method that involves creating a range of possible future outcomes based on different scenarios or assumptions.

HR Budgets

Budget allocations specifically designated for human resources activities including recruitment, training, salaries, and benefits.

Staffing Tables

Charts or documents that outline the current and projected number of employees in an organization, often broken down by department or role.

HR Demand Forecasting

HR Demand Forecasting involves predicting the future manpower requirements of an organization to meet its objectives.