What Is the Definition of the Term Margin of Safety

question 44

Multiple Choice

What is the definition of the term margin of safety?

• A)the number of units that need to be sold to achieve a profit target
• B)the amount of units expected to be sold above the break-even level
• C)the sales dollars needed to cover fixed costs
• D)the use of fixed costs to extract higher percentage changes in profits as sales volume changes

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Definitions:

Financial Results

Refers to the numerical outcomes derived from a company's operations and activities, typically reported quarterly or annually.

Senior Officers

High-ranking executives in a company or organization, typically responsible for major decisions and overall management.

Interested Parties

Individuals or groups who have a stake in or could be affected by a decision or action.

Proposed Rule

A potential regulation published by a government agency for public comment before it becomes finalized and enforceable.