In cost accounting, the term "break-even point" refers to the level of sales at which: A. Total revenue equals total variable costs B. Total revenue equals total fixed costs C. Total revenue equals total costs D. Total profit E. quals zero ...
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 ...
It is the point at which revenue is equal to costs and anything beyond that makes the business profitable. Formula: break-even point = fixed cost / (average selling price - variable costs) Before we calculate the break-even point, let’s discuss how the break-even analysis formula works. ...
Cost accounting and break-even analysisMorgan, Huw
In accounting, the break-even point refers to the revenues necessary to cover a company’s total amount of fixed and variable expenses during a specified period of time. The revenues could be stated in dollars (or other currencies), in units, hours of services provided, etc. The basic calcu...
Break-even analysis in economics, business, andcost accountingrefers to the point at which total costs andtotal revenueare equal. A break-even point analysis is used to determine the number of units or dollars of revenue needed to cover total costs (fixed and variable costs). ...
Break-Even Point Definition In accounting, economics, and business, the break-even point is the point at which cost equals revenue (indicating that there is neither profit nor loss). At this point in time, all expenses have been accounted for, so the product, investment, or business begins ...
Break-even analysis is used in cost accounting and capital budgeting to determine at what point a product or business is profitable. This analysis employs mathematical models, which may be very simple or highly complex, in order to understand the relations between the costs of doing business and...
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
break-even point break-even analysis break-even formula break-even model cost-volume-profit (CVP) analysis expense-volume-profit (EVP) analysis The latter two names are appealing because the break-even technique can be adapted to determine the sales needed to attain a specified amount of profits...