Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following statements about margin of safety is false? O a. none of the given answers is false. O b. Margin of safety

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Practices A Complete Guide

Authors: Gerardus Blokdyk

2023rd Edition

1038804450, 978-1038804457

More Books

Students also viewed these Accounting questions

Question

4. How is culture a contested site?

Answered: 1 week ago