what do you mean by margin of safety

Answers were Sorted based on User's Feedback



what do you mean by margin of safety..

Answer / sneha

IT IS THE DIFFERENCE B/W ACTUAL SALES&BREAK EVEN SALES.IT
CAN BE REPRESENTED BY THE FOLLOWING FORMULA.
MARGIN OF SAFETY=ACTUAL SALES - BREAK EVEN SALES

Is This Answer Correct ?    29 Yes 0 No

what do you mean by margin of safety..

Answer / siddu naidu

The total sales minus actual sales at a break even point is
known as "Margin of safety."

Is This Answer Correct ?    5 Yes 0 No

what do you mean by margin of safety..

Answer / guest

mos is differance between actual sales and bep sales

Is This Answer Correct ?    3 Yes 0 No

what do you mean by margin of safety..

Answer / sri

All the profits which are above the break even level(no gain n
o loss) is called margin of safety. The higher the margin of
safety the better it is.

Is This Answer Correct ?    1 Yes 0 No

Post New Answer

More Accounting General Interview Questions

what is valuation code and valuation modifier in sap fico

0 Answers   ABC,


In South Africa, the value added tax is administered by?

0 Answers  


The Tabula Manufacturing Company has been in business for one month. At the end of month the company had the following accounts: Materials used K 5 000.00 Direct labour 10 000.00 Indirect labour 3 000.00 Indirect materials 2 000.00 Labour fringe benefits 1 000.00 Supervisor’s salary 1 000.00 Depreciation Machinery 2 000.00 Miscellaneous factory overhead 1 000.00 Heat and light 500.00 Insurance on plant 1 500.00 The company processed two jobs during the month with costs as follows: Job 101 Job 102 Materials cost K3 000.00 K2 000.00 Direct labour cost K6 000.00 K4 000.00 Direct labour hours 4 000.00 3 000.00 Machine hours 2 000.00 1 000.00 The company does not use a predetermined rate for factory overhead. The rate is computed at the end of each month. Required Use both the direct labour hours and machine hours to compute: 1) The overhead rates for the month (5 pts) 2) The overhead cost for each job (5pts) 3) The total cost for each job (10 pts) 4) Briefly describe the difference between Job order and process costing, citing relevant examples (5 pts).

0 Answers  


What is BRS?

7 Answers  


what is the difference between financial accouning and financial management

2 Answers  






how to prepare trial balance?

1 Answers  


What is sweep account

2 Answers  


what is the main difference between Outstanding & Accrued Expenses?

5 Answers  


A computer purchased for the use of Branch & payment would be made by company. What would be the entry in the books of Branch ?

1 Answers  


In accounting, how do you define the premises?

0 Answers  


what is meant by banling reconcillation statement?

1 Answers   Genpact,


In the balance sheet, where do you show tds?

0 Answers  


Categories