Margin of safety

Margin of safety is amount by which budgeted (or actual) revenues exceed breakeven revenues.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Margin of safety. Amount by which budgeted (or actual) revenues exceed breakeven revenues.

According to Managerial Accounting by Braun, Tietz (5th edition),

Margin of safety. Excess of expected sales over breakeven sales; the drop in sales a company can absorb without incurring an operating loss.