What Is The Margin Of Safety?

1.	What Is The Margin Of Safety?
Answer» MARGIN of safety is USED in break-even ANALYSIS to INDICATE the amount of sales that are above the break-even point. In other words, the margin of safety indicates the amount by which a company's sales could decrease before the company will become UNPROFITABLE. Margin of safety is used in break-even analysis to indicate the amount of sales that are above the break-even point. In other words, the margin of safety indicates the amount by which a company's sales could decrease before the company will become unprofitable.

Answer»

MARGIN of safety is USED in break-even ANALYSIS to INDICATE the amount of sales that are above the break-even point. In other words, the margin of safety indicates the amount by which a company's sales could decrease before the company will become UNPROFITABLE.

Margin of safety is used in break-even analysis to indicate the amount of sales that are above the break-even point. In other words, the margin of safety indicates the amount by which a company's sales could decrease before the company will become unprofitable.

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