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CVP Income Statement
A managerial accounting financial statement that utilizes cost-volume-profit analysis to show the effects of changes in cost and volume on a company's profits.
Margin of Safety
The difference between actual or expected sales and the sales level necessary to break even; it measures how much sales can fall before a business incurs a loss.
Variable Costs
Charges that are aligned with the scale of production or the extent of activities in an enterprise.
Fixed Costs
Constant expenses that a business incurs regardless of production volume, including leases and insurance, essential for financial planning and analysis.
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