Margin of safety

From ACT Wiki
Revision as of 09:38, 22 August 2013 by imported>Doug Williamson (Spacing and italics added 22/8/13)
Jump to navigationJump to search

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.


See also