BUSINESS FINANCE I Dersi Cost-Volume-Profit (CVP) Analysis soru detayı:

PAYLAŞ:

SORU:

What is the margin of safety?


CEVAP:

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.