The margin of safety can be expressed in dollars or as a percent of sales.

Margin Of Safety

The difference between actual or expected sales and the break-even point. It measures the degree to which a company can withstand a drop in sales.

Comprehend the process and importance of determining the margin of safety in making business decisions.

Verified Answer

Final Answer :

True

Explanation :

The margin of safety can be expressed in dollars or as a percent of sales.

Learning Objectives

Comprehend the process and importance of determining the margin of safety in making business decisions.