A low margin of safety usually indicates :

CS Executive · Corporate and Management Accounting · PYQS · December 2019
A low margin of safety usually indicates :
(A) High profit
(B) High fixed overheads
(C) Low fixed overheads
(D) Operation on high level of activity

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Cost-Volume-Profit Analysis (CVP)

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