How might managers use the margin of safety concept in decision making?

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Managerial accounting

ISBN: 978-0471467854

1st edition

Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin

See More Books

Question Posted: Feb 20, 2013 09:26 AM

See More Questions

How might managers use the grapevine for their benefit?
How might managers use information about direct-labour yield and mix variances in improving the performance of a business?
How could we use the margin of safety to calculate the percent change in profit given a percent change in sales?
In 2022, Tornado Ltd. had average inventory of $92000. The 2022 income statement showed net sales of $2100000 and gross profit of $428000. In 2021, it was taking the company approximately 30 days to...
Classify the following redox reactions: (a) P4 + 10C2 4PCl (c) C12 + 2K1- 2KCI + 12
Consider the following statement of comprehensive income for the Dartmoor Corporation: \ table [ [ \ table [ [ DARTMOOR CORPORATION ] , [ Statement of Comprehensive Income ] ] ] , [ Sales , , $ 4 7 ,...
Contribution is the difference between sales and ......... .
The controller of Pueblo Ceramics Inc. wishes to prepare a cost of goods sold budget for April. The controller assembled the following information for constructing the cost of goods sold budget: Use...
S. Lee Enterprises produces two models of lawn tractor: SL1 and SL2. The models are both produced in the company's Louisville factory and go through identical assembly operations. The difference is...
Quarterly sales for a department store over a six-year period are given in the file P12_52.xlsx. a. Use multiple regression to develop an equation that can be used to predict future quarterly sales....
What do you think of the business practice of charging customers different prices for essentially the same good? Can you list some examples where you see this practice?
Why does operating leverage decrease as sales volume increases?
What is Netflixs competitive advantage?
What is the length of the partial wavelength for electromagnetic energy with a frequency of 15 MHz and a phase shift of 263 degrees (in meters)?
Let y = f(x) be a function that is differentiable at all real numbers. Suppose f has the form f(x) = {; [cx +6 4+2c for x 1 for x > 1. where b and c are some constants. What is the value of the...
Consider the sequence (n) defined by xn = (a) Show that 0In - n! nn (b) Use the result of part (a) and the Squeeze theorem to show that In 0 and n o.
Officials of Gwinnett County, one of the fastest growing counties in the country, are looking for ways to expand their sewer system. They are considering two alternative sewer designs. All annual...
On August 1, 20Y7, Rafael Masey established Planet Realty, which completed the following transactions during the month: Rafael Masey transferred cash from a personal bank account to an account to be...
Which approach, the UK or the French, do you think is best? Why?
For the vector whose polar components are (Vr = 1, VÎ¸ = 0), compute in polars all components of the second covariant derivative VÎ±;Î¼;Î½. To find...
Explain and evaluate the relevance of six applications of Artificial Intelligence for supporting communications in different parts of the customer lifecycle.
Wyckam Manufacturing Inc. has provided the following information concerning its manufacturing costs: For example, utilities should be $1,400 per month plus $0.05 per machine-hour. The company expects...
Jakes Roof Repair has provided the following data concerning its costs: Cost per Fixed Cost Repair-Hour Per Month $16.30 Wages and salaries $23,200 Parts and supplies . $8.60 Equipment depreciation...
Via Gelato is a popular neighborhood gelato shop. The company has provided the following data concerning its operations: While gelato is sold by the cone or cup, the shop measures its activity in...
business law A partner may actively compete with the partnership True False
A company provided the following data: Selling price per unit $80 Variable cost per unit $45 Total fixed costs $490,000 How many units must be sold to earn a profit of $122,500?
Suppose a 10-year, 10%, semiannual coupon bond with a par value of $1,000 is currently selling for $1,365.20, producing a nominal yield to maturity of 7.5%. However, it can be called after 4 years...

How might managers use the margin of safety concept in decision making?

Question:

Step by Step Answer:

Margin of safety is a cushion that the existing level of operations allows managers in ...View the full answer

Managerial accounting

Students also viewed these Managerial Accounting questions