The Margin of Safety in Dollars Is

question 47

Multiple Choice

The margin of safety in dollars is

• A) expected sales minus expected profit.
• B) expected sales minus sales at break-even.
• C) costs at break-even minus expected profit.
• D) expected costs minus costs at break-even.
• E) expected profit minus actual profit.

---

Definitions:

Compensating Differences

Wage differentials that are paid to workers to offset the undesirable aspects of a job or to compensate for risks associated with the job.

Divergence

The act or process of developing in different directions or deviating from a standard.

Compensating Differences

Wage differentials that compensate workers for undesirable job attributes, like risk of injury or undesirable hours.

Nonmonetary Characteristics

Features or aspects of a job or decision that are not related to salary or financial gain, such as workplace environment or job satisfaction.