Which of the Following Statements Relating to Margin of Safety

question 21

Multiple Choice

Which of the following statements relating to margin of safety is correct?

• A) It is the amount by which sales can decrease before incurring a loss.
• B) It is the excess of actual sales over expected sales.
• C) It is the difference between fixed and variable costs at a given level of production.
• D) It indicates the amount of goods or services which can be safely produced by the business.

---

Definitions:

Environmental Factors

External elements like climate, pollution, and social settings that can influence an individual's health, behavior, and development.

Prototypes

Original or first examples that serve as a model or benchmark for subsequent versions in product development, design, or conceptualization.

Exemplars

Instances or examples that are typical of a category or group, used in cognitive psychology to understand how people categorize information.

Language Development

The process by which children come to understand and communicate language during early childhood.