Break even and Margin of Safety Flashcards
1
Q
Advantages of break even?
A
Easy to use
We know the MOS/ BEP
2
Q
Disadvantages of break even
A
It is a prediction
Difficult for buisness with more than one product
3
Q
Break even
A
The point where a business reduces no profit or loss
4
Q
Margin of safety
A
The amount of units that sales can fall, before the BEP is reached
