Margin of safety measures the difference between budgeted or actual revenues, and break-even revenues.

Name: Margin of safety measures the difference between budgeted or actual revenues, and break-even revenues.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is the correct definition of margin of safety. It is the amount by which actual or budgeted sales exceed the break-even sales, indicating the cushion or buffer available to cover unexpected expenses or decreases in sales.

Margin of Safety Measures the Difference Between Budgeted or Actual