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7 months ago | 0
Correct Answer: Margin of Safety The Margin of Safety (MOS) is a crucial financial metric that helps management assess risk when considering expansion, new product lines, or market uncertainties. It measures how much sales can decline before the business reaches its breakeven point—the point where total revenue equals total costs. Formula for Margin of Safety: Margin of Safety = Actual Sales − Breakeven Sales
7 months ago | 0
CMA USA with Geetanjali
Question 3:
The __________ is a particularly important measurement for management when they are contemplating an expansion or new product line because it shows how safe the company is and how much lost sales or increased costs the company can absorb.
7 months ago | [YT] | 3