margin of safety
Definition 1
Accounting: Excess of actual sales revenue over the breakeven sales revenue, expressed usually as a percentage. The greater this margin, the less sensitive the firm to any abrupt fall in revenue. Formula: (Actual sales revenue - Breakeven sales revenue) x 100 ÷ Actual sales revenue.
Definition 2
Occupational safety: Maximum amount of exposure to a hazardous substance that produces no measurable ill-effect in test animals, divided by the actual amount of exposure received by the human population.
Mentioned in these definitions
Popular 'Accounting & Auditing' Terms
margin of safety in the news
Loading...
This content can be found on the following page:
http://www.businessdictionary.com/definition/margin-of-safety.html
