In accounting, the term “break-even point” refers to the level of production or sales at which a particular company neither incurs any loss nor generates any profit. In other words, a company generates just enough revenue to meet all its expenses, so it doesn’t earn any profit. Mostly ...
In accounting, break-even point means the point of sales where total revenue is equivalent to the total cost. It means at this point of sales there... Learn more about this topic: Cost-Volume-Profit Analysis & Income Statements from
The Break-even point (BEP) is the level of production where the company’s total revenues and expenses are equal. At the BEP, the revenue of the company by the sale of manufactured products is equal to the total costs incurred in manufacturing the product. In accounting terms, at this poi...
Accounting How to Calculate the Break-Even Point May 1, 2025 To calculate the break-even point in units use the formula: Break-Even point (units) = Fixed Costs ÷ (Sales price per unit – Variable costs per unit) or in sales dollars using the formula: Break-Even point (sales dollars)...
This graded 20-question test provides coaching to guide you to the correct answers. Use our coaching to learn the WHY behind each answer and deepen your understanding of the topic Break-even Point. Advance Your Accounting and Bookkeeping Career ...
The accounting profit break-even point provides:A. the number of units to produce to cover fixed costs.B. the number of units to produce to continue to operations in the short run.C. the number of units to produce to cover both depreciation and the fixed costs....
Break-Even DefinitionThe break-even point happens when a business’s total income equals its total expenses. The business has not generated a profit, nor has it generated a loss.Break-Even Point Expanded Definition:The break-even point (referred to as BEP) occurs when a business reaches the ...
Break-even analysis in economics, financial modeling, and cost accounting refers to the point in which total cost and total revenue are equal.
The break-even point is the sales volume or sales revenue that is needed to cover the company’s expenses. In other words, it is the point where the company will have exactly zero net income. To assist in the understanding of a company’s break-even point, its expenses are sorted into...
The accounting break-even quantity is given by the sum of the fixed cost and depreciation divided by the contribution margin. Accounting break-even tells us how much product must be sold so that the firm's overall accounting profits are not reduced....