Break even analysis, Cost Accounting

BREAK EVEN ANALYSIS

Break even analysis is a broadly used technique to study cost-volume-profit relationship.  It can be explained as - 'a system for determination of that level of activity where entire cost equals total selling price', or else 'as a system of analysis which concluded probable profit at some level of activity'. It gives the relationship among cost of production, quantity of production and the sales value.

BREAK EVEN ANALYSIS AND CVP ANALYSIS

Sometimes, both are taken as synonymous.  except, where cost profit value analysis consist of the activity of profit planning, break even analysis is simply one of the techniques used for that process.

Posted Date: 10/15/2012 6:59:34 AM | Location : United States







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

Write discussion on Break even analysis
Your posts are moderated
Related Questions
Account Analysis Method of Cost Estimation By Utilizing account analysis, the accountant classifies and examines each ledger account like variable mixed or fixed. Into their v

Prepare Cash Budget of a Company The given information concerned to the proposed budget for a company for the months ending on 31 December 1996. Additional Information

7. The Isabelle Corporation rents prom dresses in its stores across the southern United States. It has just issued a five-year, zero-coupon corporate bond at a price of $74. You ha

What is the easiest of calculate equivalents before producing a process account 2

Average costing method has the following main advantages: 1.It is a realistic costing method useful to management in analyzing operating results and appraising future production

sabonis consmetics co. purchased machinery on december 31,2011, paying $50,000 down and agreeing to pay the balance in four equal installments of $40,000 payable each dec 31. an as

Rosco Company purchased 35,000 shares of common stock of Paxton Corporation as a long-term investment for $900,000. During the year, Paxton Corporation reported net income of $300,

Goal Definition and Communication - Behavioural Aspects of Standards Goal Definition The desired goals should be clearly defined to individuals, departments and the organ

Attainable Standards and Current Standards Although the standard must be set high sufficient that achievable and it has to be worked for. Attainable standards must provide a c

Jones Company operates within a monopolistically competitive industry. The estimated demand for its products is given by the following inverse demand function P = 1760 - 12Q