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Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773

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BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773
Textbook Problem
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Why is a declining margin of safety over a period of time an issue of concern to managers?

To determine

Explain the reason of considering declining margin of safety over a period as an issue of concern.

Explanation

Margin of Safety:

The number of units sold or the income earned in excess of the break-even sales is known as margin of safety. It is calculated by deducting the break-even sales from the sales revenue.

Declining margin of safety over a period means that the differenc...

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