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Iht400 Form

Iht400 Form

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Instructions and help about iht 400 calculation pdf filler

in this video we'll talk about CVP analysis and the margin of safety what is the margin of safety in cost volume profit analysis the margin of safety is a measure of risk the risk that sales decline to the point where the company is no longer profitable the margin of safety is a measure of how far sales could fall before the company is in a loss position the margin of safety is therefore a measure of risk of how close an organization is to the danger level a level of sales that is close to the one which will result in a loss the lower the margin of safety the more carefully the organization must monitor their sales and control costs so that they do not end up in an operating loss position how is the margin of safety measured it's measured as the difference between the current level of sales and the sales at the break even point the greater the difference the more sales will have to fall before the company is in a loss position therefore the greater the margin of safety

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