The margin of safety is calculated by using
A. $$\frac{{{\text{Profit}}}}{{\frac{{\text{P}}}{{\text{V}}}{\text{ratio}}}}$$
B. $$\frac{{{\text{Fixed Cost}}}}{{{\text{Contribution}}}}$$
C. $$\frac{{{\text{Break Even Sales}}}}{{{\text{Sales}}}}$$
D. $$\frac{{{\text{Profit}}}}{{{\text{Sales}}}}$$
Answer: Option A
Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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