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
This time of year we all here about football. For me it is the bad news of how poorly the Buffalo Bills are performing. Hopefully your favorite team is doing well. One thing we

ADescribe the impact of different types of standards on motivations, and specifically, the likely effect on motivation of adopting the labor standard recommended for Geeta & Compan

behabioural aspect of standard costing on budget

The following information has been prepared for XYZ Ltd by their assistant accountant. The risk free rate of interest on government securities in 2008 is 7.3% Required:


Cost Account Ledger System A cost account ledger system is essential to analyze accounting information in order such costs may be accumulated for individual cost centers and c

specimen of cost sheet

Variable Overhead Efficiency Variance Budget for December 2003; Shs. Fixed Overheads 11,480 Variable Over

Distinction between Absorption and Marginal Costing These are two approaches of arriving at the cost of production or total profit for a specified period. The major difference

Fosson Furniture uses a process cost system to account for its chair factory. Beginning inventory consisted of 5,000 units (100% complete as to material, 55% complete as to labor)