Which of the following represents the sales volume by which , sales can drop without forcing the firm into losses?
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Since the options are not given, I am giving an assumed answer.
The correct answer should be - Margin of Safety.
The margin of safety is the amount by which the sales can drop before losses are incurred. It is the difference between the intrinsic value of a stock and its market price. In Break-even analysis of accounting, margin of safety is a measure of how much output or sales level can fall before a business reaches its breakeven point.
The correct answer should be - Margin of Safety.
The margin of safety is the amount by which the sales can drop before losses are incurred. It is the difference between the intrinsic value of a stock and its market price. In Break-even analysis of accounting, margin of safety is a measure of how much output or sales level can fall before a business reaches its breakeven point.
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