COST ACCOUNTING
FINANCIAL TERMINOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If the current level of output (or production) of the business in question 8 is 2, 500 units, its margin of safety is:
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0 units
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500 units
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1, 000 units
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1, 500 units
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Explanation:
Detailed explanation-1: -Alternatively, in accounting, the margin of safety, or safety margin, refers to the difference between actual sales and break-even sales. Managers can utilize the margin of safety to know how much sales can decrease before the company or a project becomes unprofitable.
Detailed explanation-2: -Answer: The answer is 5, 000 units.
There is 1 question to complete.