The Margin of Safety Is a Key Concept of CVP

question 53

Multiple Choice

The margin of safety is a key concept of CVP analysis.The margin of safety is the

• A)contribution margin rate.
• B)difference between budgeted contribution margin and actual contribution margin.
• C)difference between budgeted contribution margin and break-even contribution margin.
• D)difference between budgeted sales and break-even sales.

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Definitions:

Increased Trust

The development of a stronger belief in the reliability, truth, or ability of someone or something.

Members

Individuals who belong to a group, organization, or community, often contributing to its activities and goals.

Prefer

To favor or choose something or someone over other options.

Group Faultlines

Hypothetical dividing lines that may split a group into subgroups based on demographic or functional attributes, potentially affecting cohesion.