What is margin of safety?

The margin of safety in managerial accounting and finance refers to the difference between the actual or expected sales and the break-even sales level. It is a key metric that helps businesses understand how much sales can drop before the company starts incurring losses. The margin of safety indicates the cushion or buffer a business has between its break-even point and its current sales, providing __________ _________ ____ _________ __________ _________ _________ ____ ________ ______ __________.
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