Margin of safety is a financial metric that measures the extent to which actual or...
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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
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
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