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To determine the margin of safety,managers compute:
Primary Material
The main raw materials used in the production of goods or services, often a critical component in manufacturing processes.
Indirect Labor
Labor costs not directly tied to the production of goods or services, such as salary of supervisory staff.
Depreciation
The systematic allocation of the cost of a tangible asset over its useful life to reflect its decrease in value over time.
Store Equipment
Fixed assets specifically purchased for use in a retail store setting, such as shelving, cash registers, and display units.
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