A company's margin of safety is computed as

Name: A company's margin of safety is computed as
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Margin of safety is the difference between actual or expected sales and the sales at break-even point. It represents the amount of sales that a company can lose before it starts to incur losses. Therefore, option C is the correct answer. Option A and B are incorrect because they do not take the break-even point into account. Option D is incorrect because the order of the terms is reversed.

A Company's Margin of Safety Is Computed as