20% Cushion Rule

Business, Legal & Accounting Glossary

Definition: 20% Cushion Rule

20% Cushion Rule

Full Definition of 20% Cushion Rule

A standard set forward by bond analysts, which states the requirement of any corporation or institution financed by municipality bonds, to generate 20% more income above the operating budget, maintenance cost and debt services. This serves as a safety margin in case of any erroneous or unanticipated expenses.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
20% Cushion Rule. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 30, 2021 https://payrollheaven.com/define/20-cushion-rule/.
Chicago Manual of Style (CMS):
20% Cushion Rule. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/20-cushion-rule/ (accessed: November 30, 2021).
American Psychological Association (APA):
20% Cushion Rule. PayrollHeaven.com. Retrieved November 30, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/20-cushion-rule/

Definition Sources

Definitions for 20% Cushion Rule are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 13th November, 2021 | 0 Views.