Margin of safety is a financial metric that measures the extent to which actual or...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Margin of safety is a financial metric that measures the extent to which actual or expected sales exceed the breakeven point. In other words, it represents the cushion or buffer zone between current sales levels and the
point where a business covers all of its costs, resulting in zero profit or loss. The margin of safety provides insights into a company's risk exposure and its ability to absorb fluctuations in sales or production.
True or False
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
