Examlex
Which of the following statements is correct?
Margin of Safety
The difference between actual or expected sales and the sales level at which the business incurs no profit or loss.
Break-even Point
The point at which total costs and total revenue are equal, meaning there is no net loss or gain, and the business is just covering its costs.
Break-even Point
The level of sales or production at which total revenues equal total expenses, resulting in neither profit nor loss.
Fixed Costs
Costs that do not change with the level of output or sales, such as rent, salaries, or insurance premiums.
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