What is the Margin of Safety? Margin of Safety Formula

margin of safety (MOS)

The Margin of Safety (MoS) refers to the difference between the actual/target output and the break-even level of output/quantity. The margin of safety (MOS) ratio equals the difference between budgeted sales and break-even sales divided by budget sales. The margin of safety indicates how much a company may lose in sales before it starts losing […]