The Margin of Safety Is The

question 140

Multiple Choice

The margin of safety is the:

• A) Volume of units or revenues needed to cover fixed costs
• B) Amount by which volume of units or sales can drop before an organization reaches the breakeven point
• C) Amount of confidence decision makers have in a CVP analysis
• D) Unrelated to operating leverage

---

Definitions:

Classical Conditioning

An educational method where pairing two stimuli repeatedly results in a response initially triggered by the second stimulus becoming triggered by the first stimulus alone.

Pavlov

Renowned for his work in classical conditioning, signifying the learning process through which a neutral stimulus becomes associated with a meaningful stimulus.

Meat Powder

A stimulus used in Pavlov's experiment to evoke the salivation response in dogs, demonstrating classical conditioning.

Immediate Reinforcer

A reward that occurs directly following a behavior, which increases the likelihood of the behavior being repeated in the future.