The Range and Standard Deviation Are Measures of

question 90

Multiple Choice

The range and standard deviation are measures of

• A) central tendency.
• B) variability.
• C) frequency distribution.
• D) correlation.

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Definitions:

Margin of Safety

The difference between actual or expected sales and the break-even point, indicating the amount by which sales can drop before a company incurs losses.

Break-Even Sales

The amount of revenue required to cover total fixed and variable expenses during a specific period, resulting in no profit or loss.

Current Sales

The total sales revenue that a company generates in the present or most recent accounting period.

Operating Leverage

A measure of how sensitive a company's operating income is to changes in sales volume, indicating the degree of fixed versus variable costs.