Margin of Safety (MOS): Learning Objectives: Define and explain margin of safety. Calculate margin of safety ratio. What is its significance/importance? Contents: Definition of Margin of Safety (MOS) Formula of MOS Example Review Problem Definition and Explanation: Margin of safety (MOS) is the excess
Margin of Safety (MOS)
Margin of safety can be defined as the excess of budgeted (or actual) sales over the break-even volume of sales.