What is Margin of Safety and How to Calculate it

What is Margin of Safety and How to Calculate it?

The margin of safety (MOS) is an accounting concept that measures the variation between real or predicted sales and break-even sales volume. It determines how much sales can fall before a company hits its break-even threshold measurement, past when it will make a financial loss. This notion is critical for firms to evaluate their risk …

What is Margin of Safety and How to Calculate it? Read More »