The margin of safety may be defined as
A. the point at which break-even point sales are achieved
B. the excess of planned sales over the current actual sales
C. the extent to which sales revenue exceeds fixed costs
D. the difference between planned sales and break-even point sales
Answer: Option D
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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