Amount of money by which total revenues exceed breakeven revenues is classified as

A margin of safety
B margin of profit
C margin of loss
D margin of income

Correct Answer: margin of safety

Amount of money by which total revenues exceed breakeven revenues is classified as margin of safety. Margin of safety is a principle of investing in which an investor only purchases securities when their market price is significantly below their intrinsic value.
Bissoy MCQ
#Management #Management Accounting

Related Questions

Last year if 97% of the revenues of a company came from domestic sources and the remaining revenues, totaling Tk. 4,50,000, came from foregin sources, what was the total of the company's revenues?
A Tk. 1,350,000
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C Tk. 4,500,000
D None of these
A certain company that sells only cars and trucks reported that revenues from car sales in 1997 were down 11 percent from 1996 and revenues from truck sales in 1997 were up 7 percent from 1996. If total revenues from car sales and truck sales in 1997 were up 1 percent from 1996, what is the ratio of revenue from car sales in 1996 to revenue from truck sales in 1996?
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Answer the question on the basis of the given information. Businesses are suffering because of lack of money available for development loans.To help businesses,the government plans to modify the income- tax structure in order to induce individual tax payers to put a larger portion of their incomes into retirement savings accounts, because as more money is deposited in such accounts, more money becomes available to borrowers. Which of the following, if true, raises the most serious doubt regarding the effectiveness of the government's plan to increase the amount of money available for development loans for businesses?
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B 130
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D None of these
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A 40 Taka
B 60 Taka
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Breakeven analysis is a
A Short term analysis
B Long term analysis
C Average of short and long term analysis
D Any one of these
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Method, which uses specific information on products as weights to allocate bundled revenues for each product in bundle is classified as
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B stand-alone revenue allocation method
C incremental revenue allocation method
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