Match the following terms (a-e) with their definitions.
-Indicates the possible decrease in sales that may occur before operating loss results
A)Profit-volume chart
B)Cost-volume-profit chart
C)Sales mix
D)Operating leverage
E)Margin of safety

Question

Quizplus · Accepted Answer

The margin of safety indicates the possible decrease in sales that may occur before operating loss results, showing how much sales can fall before a business reaches its breakeven point.

Match the Following Terms (A-E) with Their Definitions