Examlex
If we include the cost of bankruptcy in the MM analysis of capital structure in a world with taxes,we would tend to believe that the cost of debt increases as leverage increases and that there is probably an optimal capital structure.
Margin of Safety
The difference between actual or projected sales and the break-even sales level, used to assess risk.
Volume of Sales
Volume of sales refers to the total number of units sold over a specific period, indicating the quantity of business conducted.
Break-even Point
The point at which total revenues equal total costs, resulting in no net loss or gain for a business.
Variable Costing
An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold and inventory valuation.
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