What Formula Calculates the Margin of Safety in Dollars

question 84

Multiple Choice

What formula calculates the margin of safety in dollars?

• A) expected sales - expected profit
• B) expected sales - sales at break-even
• C) expected costs - costs at break-even
• D) costs at break-even - expected profit

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Definitions:

Human Resources

The department within an organization that focuses on the recruitment, management, and direction of people who work in it.

Quality Control

Procedures and standards implemented to ensure that products or services meet specific requirements and are of consistent quality.

Cost Element

A component that categorizes costs according to their nature, involved in the cost accounting process to allocate expenses accurately.