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
Prepare answers to each of the following questions.  Assume a tax rate of 30%. (i) Harry Ltd has a balance of prepaid rent in the balance sheet amounting to $100 000 as at 30 Ju

Operating Income 1. Operating Income is derived from two sources, Rental Income from businesses operating in the warehouse complex and Interest Income of the project operating

Xander Harris is considering whether to buy a corn and soybean farm in Iowa. The farm will cost $800,000, and Xander will be able to pay this from profits his recently deceased mot

for financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units?

Find Out the Cost per Unit Material A is added at the start of a production process. Overheads and Labor are added continuously throughout the production process. At the endi

COST PROFIT VOLUME ANALYSIS Cost profit volume (CVP) analysis is an essential tool for profit planning. It can be explained  as - ' a managerial tool showing the relationship a

You are a beginner accountant with a large accountancy firm and a training day has been organised to update all technical staff on a range of topics across numerous technical disci

Marginal Cost Marginal cost is the change in a firm's cost of production. It is related to a unit change in its output, or the added cost of producing the next unit. The margin

Economic Order Quality or EOQ Define the model and the three methods of computing the EOQ. 1. Assumptions of the model. Illustration The given information was extra

Purposes of standard cost accounting connection - suppose you were a management consultant and the client asked you the advantages and disadvantages of using standard costs and cos