Question: A key reason for management to build in a margin of safety in its projections is management can assess if its targets are reasonable in

A key reason for management to build in a margin of safety in its projections is

management can assess if its targets are reasonable in order to cover fixed costs.

if sales do not reach the targeted number, management will not suffer the consequences.

variable costs may fluctuate and this will affect the break-even calculation.

it will show the operating profit if sales are not as expected.

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