Difference between revisions of "Margin of safety"
(Created page with "Margin of safety is amount by which budgeted (or actual) revenues exceed breakeven revenues. ==Definitions== According to Cost Accounting by Horngren, Datar, Rajan (14t...") |
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According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | ||
:[[Margin of safety]]. Amount by which budgeted (or actual) revenues exceed breakeven revenues. | :[[Margin of safety]]. Amount by which budgeted (or actual) revenues exceed breakeven revenues. | ||
| + | According to [[Managerial Accounting by Braun, Tietz (5th edition)]], | ||
| + | :[[Margin of safety]]. Excess of expected sales over breakeven sales; the drop in sales a company can absorb without incurring an operating loss. | ||
| − | + | [[Category: Accounting]][[Category:Articles]] | |
Latest revision as of 12:46, 15 July 2020
Margin of safety is amount by which budgeted (or actual) revenues exceed breakeven revenues.
Definitions
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Margin of safety. Amount by which budgeted (or actual) revenues exceed breakeven revenues.
According to Managerial Accounting by Braun, Tietz (5th edition),
- Margin of safety. Excess of expected sales over breakeven sales; the drop in sales a company can absorb without incurring an operating loss.
