The break-even point is the number of units that must be sold to achieve an operating income of zero. At the break-even point, sales in dollars equal costs. The break-even calculation answers the question: How many units does the company have to sell to pay all its expenses for the ...
A company may express a break-even point in dollars of sales revenue or number of units produced or sold. No matter how a company expresses its break-even point, it is still the point of zero income or loss. To illustrate the calculation of a break-even point watch the following video ...
Break-even point refers to the level of activity or sales that will yield to zero profit. Learn all about the break-even point, its definition, formula and analysis in this lessson, complete with illustration and examples ...
Break-even pointhospitality industryManagement accounting and cost calculation in the hospitality industry is a pathless land. The prezent article is a starting point of a long scientific approach on the domain of the hospitality industry and on the managerial accounting in this area. Our intention ...
Definition of Break-even Point 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...
A company's break-even point is the amount of sales or revenues that it must generate in order to equal its expenses. In other words, it is the point at which the company neither makes a profit nor suffers a loss. Calculating the break-even point (through break-even analysis) can ...
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). ...
What is accounting break-even point? CVP Analysis: The Cost-Volume-Profit (CVP) analysis is an important tool in making economic managerial decisions. Under CVP analysis, it is assumed that regardless there is an increase or decrease of sales volume, the unit sales price, unit variable costs,...
Break-even analysis is a measurement system that calculates the break even point by comparing the amount of revenues or units that must be sold to cover fixed and variable costs associated with making the sales.
1. Break-Even Point 2. Determination of Break-even Point 3. Managerial Uses of Break-Even Analysis 1. Break-Even Point: ADVERTISEMENTS: The break-even point (B.E.P.) of a firm can be found out in two ways. It may be determined in terms of physical units, i.e., volume of ou...