Explain the margin of safety

      

Explain the margin of safety

  

Answers


Wilfred
It is the excess of budgeted (actual sales) over the break – even volume of sales.
It shows the amount by which sales can drop before losses begin to be incurred.
The formula is;

mar11542019106.png
Wilfykil answered the question on April 15, 2019 at 10:07


Next: Illustrate Target Profit Analysis
Previous: Give two methods of aerating flour mixtures and in each case give an example of a raising agent used.

View More Cost Accounting Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions