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Margin of Safety
The difference between actual or expected sales and the sales volume at which a company breaks even.
Fixed Costs
Rephrased: Expenses that remain constant regardless of the amount of goods or services produced by a business.
Variable Costs
Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor.
Budgeted Net Income
The projected net income for a future period, based on expected revenues and expenses.
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