A small margin of safety gives managers greater confidence in making plans such as incurring additional fixed costs.

Name: A small margin of safety gives managers greater confidence in making plans such as incurring additional fixed costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A small margin of safety indicates that there is little room for error in sales before the company starts incurring losses, making managers more cautious about incurring additional fixed costs.

A Small Margin of Safety Gives Managers Greater Confidence in Making