Margin of safety: Difference between revisions
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1. | 1. ''Management accounting''. | ||
''Management accounting''. | |||
The margin of safety is the extent to which sales may fall below their existing level before the break-even point is reached. | The margin of safety is the extent to which sales may fall below their existing level before the break-even point is reached. | ||
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== See also == | == See also == | ||
* [[Break even analysis]] | |||
* [[Break even point]] | * [[Break even point]] | ||
* [[Margin]] | |||
[[Category:Accounting,_tax_and_regulation]] | |||
Latest revision as of 16:47, 2 August 2020
1. Management accounting.
The margin of safety is the extent to which sales may fall below their existing level before the break-even point is reached.
2.
More generally, the extent to which any key variable or input can fall below its current or planned level, without endangering the entity or project under review.
Also known as the Safety margin.
