What is in accounting?
In traditional accounting, the margin of security is a measure of how the company or business will be able to "break even" in production products. This type of cost accounting provides the basis for leadership. It deals with the expected cost of making versus potential income, where cost accounting is decisive in preventing financial incorrect steps planners.
The safety range uses an equation involving an uniform point that would help the company find out whether it has achieved or made a project. The use of this margin is more of an analysis of production costs rather than any solid projection of actual income, because in most cases the equation in most cases does not actually correct. Many companies create a visual representation of a safety margin in terms of line or column chart to help show whether the project is likely to generate profits.
Although the above represents the use of security margins in accounting, the term Jerovněžně usesInvestors after some important financial experts used to describe the research of the company in general. Some use this term to describe favorable results in performing proper care of society. Thus, this margin can therefore be used to indicate how convenient the investor could be with the price of earnings or similar measures for future profitability for the company.
Generally, safety margin helps set "safe" instructions for investing or mapping the future of the company. Since this term begins to use more diverse types of financial experts, it will come to define the firmness of the company in terms of profit. Beginners can read more about the use of this deadline from traders who provide books explaining the use of current stock market conditions and trading in securities or shares.
When margins are bThe safety of recommendations as an analysis of "business strength" can also be part of the SWOT analysis. SWOT means strengths and weaknesses, opportunities and threats involved in some business businesses. This kind of analysis has been applied to Fortune 500 for decades and helps leaders to determine the challenges and what opportunities they can take advantage of their relevant markets and industries.