• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Margin of safety

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Margin of safety

  • This topic has 3 replies, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • March 25, 2018 at 6:53 pm #443745
    michaelsamiotis
    Participant
    • Topics: 47
    • Replies: 27
    • ☆☆

    Good afternoon sir. I have a question which is more mathematical but it relates to margin safety. When in chapter 7 we needed to find the % change in demand we did (Q2-Q1)/Q1 and when I saw the margin of safety my mind went to (budgeted sales-breakeven)/breakeven as in change of demand but you put budgeted sales. When do we apply each? What is the difference between (Old-New)/New and (Old-New)-Old? It’s a riddle to me at this moment.
    Thank you for everything.

    March 25, 2018 at 6:59 pm #443749
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    I am sorry, but I do not really understand what you are asking.

    Chapter 7 of our lecture notes is about pricing and is nothing to do with the margin of safety.

    March 25, 2018 at 7:35 pm #443752
    michaelsamiotis
    Participant
    • Topics: 47
    • Replies: 27
    • ☆☆

    What am I asking is what is the difference between doing (Old-New)/New and (Old-New)-Old where New and old are the values that we are seeking their difference in percentage.

    March 26, 2018 at 7:18 am #443761
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    But I repeat – in Chapter 7 we are not looking at margin of safety. We are looking at the elasticity, which is not the same thing.
    The formula in the lectures is what we use.

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Margin of safety’ is closed to new replies.

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • osman-the-zephyr@ on MA Chapter 1 Questions Accounting for Management
  • adebusola on MA Chapter 1 Questions Accounting for Management
  • Sharith on Interest rate risk management (1) Part 5 – ACCA (AFM) lectures
  • Sharith on Interest rate risk management (1) Part 5 – ACCA (AFM) lectures
  • John Moffat on Discounted Cash Flow Further Aspects, Replacement – ACCA Financial Management (FM)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in