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.


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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.