The Margin of Safety Is

question 73

Multiple Choice

The margin of safety is

• A)the number of units that need to be sold to achieve a profit target.
• B)the amount of units expected to be sold above the break-even level.
• C)the sales dollars needed to cover fixed costs.
• D)the use of fixed costs to extract higher percentage changes in profits as sales volume changes.

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Definitions:

One Revision

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Specific Words

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Negative Ideas

Concepts or thoughts that are undesirable, pessimistic, or detrimental in nature, often presenting challenges in communication and problem-solving.

Fog Index

A readability test designed to estimate the years of formal education needed to understand a piece of text on the first reading, highlighting the complexity of the language used.