Directions: Choose the Best Answer Based on the Information You

question 15

True/False

Directions: Choose the best answer based on the information you read in Chapter 13.
​ Crediting sources of information accurately gives your own conclusions validity.

---

Definitions:

Margin Of Safety

The difference between actual or projected sales and the break-even point, indicating the buffer against losses.

Break-Even Sales

The amount of revenue that is exactly sufficient to cover both fixed and variable costs, resulting in neither profit nor loss.

Break-Even

The point at which total revenues equal total costs, resulting in no net loss or gain.

Total Dollar Sales

The aggregate revenue a company generates from the sale of its goods or services before any expenses are subtracted.