In management accounting, what term identifies the volume of activity beyond the break-even point where business operates with safety?

Explanation

• The Margin of Safety represents the amount by which actual or projected sales exceed break-even sales revenue.
• Formula: $text{Margin of Safety} = text{Actual Sales} – text{Break-Even Sales}$.
• A higher Margin of Safety indicates lower financial risk of incurring operating losses during business downturns.