Busıness Fınance I Deneme Sınavı Sorusu #830333

_ _ _ _ _ _ _ is the cushion amount that the actual or budgeted sales can drop by, still enabling the business to break even.

Which of the following completes the sentences above?


Contribution margin

Break-even point

Margin of safety

Cost-volume-profit

Total leverage


Yanıt Açıklaması:

The margin of safety is the cushion amount that the actual or budgeted sales can drop by, still enabling the business to break even. It is the difference between actual/budgeted sales and the break-even sales. The margin of safety can be stated in units, dollars or in a ratio form.

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