Variance Preferences Are Also Known as ____________

question 41

Multiple Choice

Variance preferences are also known as ____________.

• A)wagering preferences
• B)payoff preferences
• C)gambling tendencies
• D)risk attitudes

---

Definitions:

Margin of Safety

The difference between actual or projected sales and the sales level necessary to break even, as a buffer against uncertainty.

Contribution Margin

The difference between sales revenue and variable costs of a product or service, indicating how much contributes towards covering fixed costs and profit.

Variable Costs

Costs that vary in direct proportion to changes in the level of production or sales.

Fixed Costs

Expenses that remain constant regardless of the level of output or sales, including rent, wages, and insurance costs.