Which of the following can be considered a measure of risk in cost-volume-profit analysis?

Name: Which of the following can be considered a measure of risk in cost-volume-profit analysis?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The margin of safety is a measure of how much sales can decrease before a company reaches its break-even point. A larger margin of safety indicates a lower risk. The other choices (contribution margin, break-even point, and sales mix) are not measures of risk but rather key components in cost-volume-profit analysis.

Which of the Following Can Be Considered a Measure of Risk