Assumptions of break-even analysis, Cost Accounting

Assumptions of Break-Even Analysis

1. The break-even chart is fundamentally a static analysis; commonly changes can merely be displayed by drawing a new chart or a series of charts

2. Relevant range is given to explain fixed and variable costs in relation to an exact period and designated range of production level

3. All costs go down into either variable or fixed cost classification

4. Unit variable costs stay the similarity and there is a direct relationship between volume and costs

5. Volume is assumed to be the merely important factor affecting cost nature

6. Unit sales price and other market situations are assumed to stayed unchanged

7. Net fixed costs stay constant over the relevant range considered

8. Inventory changes are so unimportant such they have no impact on the analysis

9. The technology level does not change.

Posted Date: 2/7/2013 12:37:17 AM | Location : United States







Related Discussions:- Assumptions of break-even analysis, Assignment Help, Ask Question on Assumptions of break-even analysis, Get Answer, Expert's Help, Assumptions of break-even analysis Discussions

Write discussion on Assumptions of break-even analysis
Your posts are moderated
Related Questions
Vince's Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are $48,000. The sales price averages $9, and it costs t

All  transfer-pricing  methods  give  the  similar division  operating  income.  Do  you  agree? Describe.

is ppe taxable

King Airlines King Airlines is one of many low-cost airlines in Europe. The managers want to expand the business and have an opportunity to purchase a second-hand plane to op

Uniform Costing It is a general system utilizing agreed concepts, standard and principles accounting practices adopted via different entities in the similar industry to ensure


A transport company is preparing its cost budgets for the coming year. It has been set both social objectives & cost targets by the government which it must achieve in order to rec

A firm uses capital and labor to produce a single output good. The production function is given by F(K, L) = K 2 L where K is the amount of capital and L is the amount of labor em

Discuss the advantages and disadvantages of designing an IC using VHDL and synthesis compared with the traditional design approach using schematic capture, simulation and layout.

i.   Identify the organization ii.  Identify the stakeholders iii. Give the major requirements for the IT application iv. Reflect on how difficult it was to do the require