A-LevelAccountingTraditional costing methods9706/12 · Feb/Mar 2018 · Q231 Mark

How is the margin of safety calculated?

Aactual contribution less budgeted contribution

Bactual profit less budgeted profit

Cbudgeted contribution less break-even point

Dbudgeted sales less break-even point

✓ Correct answer

D: budgeted sales less break-even point

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2018 Paper 1 Variant 2, question 23.

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