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

Name: A larger 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 larger margin of safety means there is a larger cushion against unexpected events or changes in demand, giving managers more confidence in their plans and ability to cover fixed costs.

A Larger Margin of Safety Gives Managers Greater Confidence in Making