Why Are Employees Especially Dangerous

question 69

Multiple Choice

Why are employees especially dangerous?

• A) They are technically sophisticated.
• B) They are trusted.
• C) both A and B
• D) neither A nor B

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Definitions:

Margin of Safety

The difference between actual or expected sales and the sales volume at which a company breaks even.

Fixed Costs

Rephrased: Expenses that remain constant regardless of the amount of goods or services produced by a business.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor.

Budgeted Net Income

The projected net income for a future period, based on expected revenues and expenses.