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The margin of safety is the ?

a. contribution margin b. Difference between budgeted sales and break even sales c difference between break even point and cash flow break even

Budgeting
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Question added by SREEDEVI SUNILKUMAR , Business finance officer , Emirates Airline
Date Posted: 2014/02/18
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محمد جلولي
by محمد جلولي , Head of Tender control department , Gafsa Phosphate Company (CPG)

 

  "Answer   " b 

 

Margin of safety: Difference between budgeted sales and break even sales

The margin of safety is the ability of a company to support a decline is sales. More safety margin, the higher the company can withstand a drop in turnover are still making profits

Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

b. Difference between budgeted sales and break even sales

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