A. The margin of safety is the amount by which sales can decrease before losses can occur (budgeted/actual sales - sales level at breakeven).

B. The hurdle rate is a capital budgeting term. It is the rate of return that must received on a specific project under consideration before it will be acceptable to management.

C. The Sales volume variance measures the impact of differences in sales volume. The calculation is [(Actual Sales volume - Budgeted Sales volume) × Standard contribution per unit].

D. The marginal income rate is the rate of return that is gained from making one more sale or one more investment.