The margin of safety is the difference between

Name: The margin of safety is the difference between
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The margin of safety is the difference between the budgeted or expected sales revenue and the break-even sales revenue. It represents the amount of sales that can be lost before the business starts incurring losses. Therefore, option D is the correct choice. Option A and B do not accurately represent the margin of safety, and option C is simply the variance between budgeted and actual sales revenue.

The Margin of Safety Is the Difference Between