Explain the difference between the break-even point, the margin of safety, and operating leverage.
What will be an ideal response?
Break-even is the point where the organization will make zero profit; the margin of safety is the difference between the actual sales level and the break-even sales level; and operating leverage describes the extent to which the organization's cost structure is made up of fixed costs.
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Concerning the covering of exchange market risks, assuming that a depreciation of the domestic currency is anticipated, one can say that there is an incentive for
a. exporters to rush to cover their future needs. b. importers to rush to cover their future needs. c. both exporters and importers to rush to cover their future needs. d. neither exporters nor importers to rush to cover their future needs.
Which of the following is not eligible for immediate trademark protection?
A. fanciful trademarks B. arbitrary trademarks C. suggestive trademarks D. descriptive trademarks
Unappropriated Retained Earnings will decrease because of net losses, declarations of cash or stock dividends or stock splits, and appropriations
Indicate whether the statement is true or false
The value of discretionary costs is often measured using non-monetary measures
Indicate whether the statement is true or false