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
Shubenacadie Inc. is currently considering a project with a 5-year life that it believes has the potential to return the company to profitability. Based on the results from a marke

A. Material Sampling -Analyzing Direct Material Costs You are reviewing a cost proposal, which includes an $800,200 direct material estimate. After Initial examination of the pro

Co-ownership incentive scheme or Profit Sharing Schemes The organization permits for ownership whereby the employees are permitted to own a percentage of the shares in the fir

Bugga Corp expects to sell 3,000 units in October, and expects sales to increase 20% each month thereafter. Sales price is expected to stay constant at $8 per unit. What are budge

Semi Variable Costs Are costs along with both a fixed and variable cost component? The fixed component is such portion that is constant irrespective of the level of activity.

i want some informations about elements of manufacturing cost

Reasons for Overhead Variances Useful for Control Reasons Overhead variances are essentially a book balancing exercising giving an arithmetic reconciliation between the actual

Analysis of stockholders equity: Star Corporation issued both common and preferred stock during 19X6. The stockholders' equity sections of the company's balance sheets at the

Smith Corporation purchased an intangible asset for $110,000. Compute the second year's tax amortization. The second year would be a full year's amortization. The company estimates

Moore Corporation follows a policy of a 10% depreciation charge per year on all machinery and a 5% depreciation charge per year on buildings (the corporation uses the nearest full