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      Question

      …………… is the % by how much % can the sales

      drop down before the organisation start making losses
      A BE % Correct Answer Incorrect Answer
      B Contribution Ratio Correct Answer Incorrect Answer
      C MOS% Correct Answer Incorrect Answer
      D PV ratio Correct Answer Incorrect Answer

      Solution

      The Margin of Safety Percentage represents the percentage by which sales can drop before the organization starts incurring losses. It is a measure of the cushion or safety buffer that a company has to cover its fixed costs and still remain profitable. A higher MOS% indicates a greater level of safety in a company's operations.

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