Question

Choose the correct answer Margin of safety is the difference between (a) Planned sales and planned profit (b) Actual sales and break-even sal (c) Planned sales and actual sales (d) None of the above

   Choose the correct answer
Margin of safety is the difference between
(a) Planned sales and planned profit
(b) Actual sales and break-even sal
(c) Planned sales and actual sales
(d) None of the above

Cost Accounting

Cost Accounting

K. Alex 1st Edition

Chapter 13, Problem 8

Instant Answer

Step 1

Margin of Safety (MOS) is a financial metric used to determine the amount of sales that exceeds the break-even point. In other words, it is the cushion or the extent to which sales can drop before a business reaches its break-even point, where it neither makes a Show more…

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Choose the correct answer Margin of safety is the difference between (a) Planned sales and planned profit (b) Actual sales and break-even sal (c) Planned sales and actual sales (d) None of the above

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