break even point

break even point the point at which is the income from sale of a product or service equals the invested costs, resulting in neither profit nor loss, at the stage at which income equals cost . Break-even point can be described as a point where there is no net profit or loss.

Margin of Safety (MOS)

Learning Objectives: Define and explain margin of safety. Calculate margin of safety ratio in Percentage. What is its significance/importance? Calculation of merging of safety in cost volume profit analysis Contents: Definition of Margin of Safety (MOS) Formula of MOS Example Review Problem Definition and Explanation: