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makvit [3.9K]
3 years ago
6

The margin of safety is a measure of the distance between budgeted sales and the break-even point. It can be measured in dollars

, in units or as a percentage.
These statements are true.
These statements are false.
Statement one is true and statement two is false.
Statement one is false and statement two is true.
Business
1 answer:
Rudiy273 years ago
4 0

Answer:

The correct option is these statements are true

Explanation:

Margin of safety is the measure of the reduction in sales that needs to be recorded before a company makes no profit,invariably the difference the planned sales volume and the sales volume required to break even(makes no profit no loss).

The margin of safety can be expressed in volume,say 100 units of a product,in dollar terms ,say each product sells for $100 each,the margin of safety becomes $10,000($100*100) and can also be expressed in percentage terms depending on the way management wants it stated.

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Answer:

Expense must be recognized in July

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The reason is that the expense must be recognized in the month in which the supplies are used because the accrual concept says that the expenses must be realized when they are incurred. Incurred means that the consideration received has been used. For example if I pay the telecommunication network in June to give 4G internet and the services are delivered in the month July then the expenses will be realized in the month in which the services were used and that is July for internet facilities. So in this case the supplies are used in the month of July which is in-accordance with the accrual concept.

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$1500 for supplies to sell at a football game. Total receipts for the venue was $3,700. What were her expenses as a percentage o
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Answer:

        \large\boxed{\large\boxed{41\%}}

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You need to assume that the total <em>expenses</em> were equal to the<em> cost of the supplies</em>, i.e. there were not other expenses but the<em> $1,500 for supplies to sell.</em>

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        Percentage=\dfrac{expenses}{revenue}\times 100\\\\\\ Percentage=\dfrac{\$1,500}{\$3,700}\times 100=40.5\%\approx41\%

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