Saving for Protection Against Unexpected Setbacks-Such as the Loss of a Job

question 70

Multiple Choice

Saving for protection against unexpected setbacks-such as the loss of a job or a medical emergency-is called ________ saving.

• A)public
• B)bequest
• C)precautionary
• D)life-cycle

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Definitions:

Contribution Margin Ratio

The ratio of contribution margin to sales revenue, used to measure the profitability and efficiency of a product or service.

Margin Of Safety

The difference between the actual or expected profitability of a project and the break-even point. It is a cushion against uncertainty.

Net Operating Income

The profit generated from a company's everyday operations, calculated by subtracting operating expenses from operating income.

Contribution Margin

The difference between sales revenue and variable costs of a product or service, indicating the amount contributing to covering fixed costs and generating profit.