Examlex
Describe three costs of inflation.
Break-even Analysis
A calculation that determines when an investment will reach a financial break-even point.
Margin of Safety
The difference between actual or projected sales and the break-even point, indicating the level of risk in missing sales projections.
Break-even Sales
The amount of revenue needed to cover total costs, both fixed and variable, indicating the point at which a company neither makes a profit nor incurs a loss.
Margin of Safety
The difference between actual or projected sales and the sales level necessary to break even, as a buffer against uncertainty.
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