margins

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sumanthkrishna (Querist)
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24 June 2011 Can Anyone please clarify me on the topic of Margins?it would be helpful if the clarification is with an example...

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Guest (Expert)

24 June 2011
Margin is the difference between two fugures. One figure is on which margin is calculated, while the other one is the figure which resulted after deducting the margin from the first figure. It can be in absolute term like Rs. 1 Lac or it can be in Percent say 20 %.

There are different margins for different purposes.

Eg: Margin of safety in sales. It is that portion of sales which is over & above the minimum sales needed to break even.

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