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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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When a certain portion of the end product must consist of domestically produced goods or that a certain portion of the final cos
Kamila [148]

Answer:

Local Content Requirements

Explanation:

Local content requirements are policies used by both developing countries and developed countries aiming at promoting the use of local inputs and fostering growth of domestic industries. It requires that a certain agreed upon percentage of intermediate goods or inputs used in the production process be gotten from local or domestic manufacturers.

Government imposes these local content requirements in order for foreign companies to be able to operate in their economy. When it is done properly, there's usually increases in the aspect of local employment with industrial and technological growth of the local manufacturers.

5 0
3 years ago
Diversity has become a critical bottom-line business strategy in today's global economy.
baherus [9]

The statement "Diversity becomes the critical & bottom line strategy of the business for the today economy" is true.

The information regarding diversity is as follows:

  • There is a recent study regarding the Boston Consulting Group i.e. BCG in this, the diversity rises the bottom lines for the organization.
  • It has a direct impact on the bottom line.

Therefore we can conclude that the statement "Diversity becomes the critical & bottom line strategy of the business for the today economy" is true.

Learn more about the diversity here: brainly.com/question/1201548

5 0
3 years ago
In a mutual fund, investors share equally in profits, losses, and management decisions.
sammy [17]

Answer: True

Explanation: A mutual fund is a collective pool of funds provided by a group of individuals to money managers for investment in various securities such as stocks and bonds.

Due to it's collective nature, every shareholder or investor benefits and loses in equal portion - and the expenses of the mutual fund are shared in the expense ratio.

Because the funds are invested into stocks, bonds and other securities, they usually have a lower risk than individual stocks or bonds.

5 0
3 years ago
An investment of $115 generates after-tax cash flows of $50 in Year 1, $90 in Year 2, and $150 in Year 3. The required rate of r
WINSTONCH [101]

Answer:

The  correct answer is B.

Explanation:

Giving the following information:

An investment of $115 generates after-tax cash flows of $50 in Year 1, $90 in Year 2, and $150 in Year 3.

Rate of return= 20%

To calculate the present value, we need the following formula:

NPV= -Io + ∑[Cf/(1+i)^n]

Cf= cash flow

Io= 115

Cf1= 50/ 1.20= $41.67

Cf2= 90/1.2^2= $62.5

Cf3= 150/1.2^3= $86.81

NPV= -115 + (41.67 + 62.5 + 86.81)

NPV= $75.98

6 0
3 years ago
The Food and Drug Administration (FDA) announced yesterday that they would approve a new cancer-fighting drug from Pharma Compan
Julli [10]

Answer:

the approval was already anticipated by the market

Explanation:

This abnormal return of 0% suggests that the approval was already anticipated by the market. Meaning that the price of the Pharma company's stock had already been affected by the speculation previously and when the FDA made the announcement investors had already made their move in the market with regards to Pharma's stock. Thus causing no further move and a return of 0% to occur.

5 0
3 years ago
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