Which of the following statements about margin of safety is false? a. If only the...

80.2K

Verified Solution

Question

Accounting

image
Which of the following statements about margin of safety is false? a. If only the fixed costs increase but the number of units sold and unit selling price and unit variable cost are all constant, the margin of safety decreases. b. If only the fixed costs decrease but the number of units sold and unit selling price and unit variable cost are all constant, the margin of safety decreases. cIf the variable cost per unit decreases but the number of units sold, unit selling price and total fixed cost are all constant, the margin of safety increases d. none of the given answers is false. e Margin of safety measures the difference between budgeted revenues and breakeven revenues

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students