See the Explanation of Break-even Point.
See the Explanation of Break-even Point.
Our Explanation of Break-even Point illustrates how to determine the number of units or sales dollars that will result in zero net income. The techniques rely on a product's contribution margin or contribution margin...
What is the margin of safety? Author: Harold Averkamp, CPA, MBA Definition of Margin of Safety In break-even analysis, the term margin of safety indicates the amount of sales that are above the break-even point. In other...
A term used in break-even analysis to indicate the amount of sales that are above the break-even point. In other words, the margin of safety is the amount by which a company’s sales could decrease before the...
Our Explanation of Break-even Point illustrates how to determine the number of units or sales dollars that will result in zero net income. The techniques rely on a product's contribution margin or contribution margin...
How do you reduce the break-even point? Author: Harold Averkamp, CPA, MBA Definition of Break-even Point The break-even point is the number of units or amount of revenues needed for the company’s income statement to...
Break-even Point Quiz and Test | AccountingCoach Break-even Point(Practice Quiz) Download PDF Author: Harold Averkamp, CPA, MBA For multiple-choice and true/false questions, simply press or click on what you think is the...
See our Break-even Point Outline.
What is the break-even formula? Author: Harold Averkamp, CPA, MBA Break-even Point in Units of Product The formula for determining the break-even point in units of product sold is: total fixed expenses divided by the...
Break-even Point Author: Harold Averkamp, CPA, MBA 41 Q&A Popular Recent How do you calculate the break-even point in terms of sales? What is cost accounting What is the break-even point? What is the difference between...
What is the break-even point? Author: Harold Averkamp, CPA, MBA Definition of Break-even Point In accounting, the break-even point refers to the revenues necessary to cover a company’s total amount of fixed and...
What causes an increase in break-even point? Author: Harold Averkamp, CPA, MBA Definition of Break-even Point The break-even point is the sales volume or sales revenue that is needed to cover the company’s expenses. In...
Our Explanation of Break-even Point illustrates how to determine the number of units or sales dollars that will result in zero net income. The techniques rely on a product's contribution margin or contribution margin...
What increases a break-even point? Author: Harold Averkamp, CPA, MBA Definition of Break-even Point The break-even point is the volume of sales in units or in dollars that is equal to a company’s total expenses...
Improving Profits Author: Harold Averkamp, CPA, MBA 78 Q&A Popular Recent What is accounting? How do you calculate the break-even point in terms of sales? How do I calculate the after-tax cost of debt? What is cost...
The analysis of how profits change as volume changes. The calculation of the break-even point is a part of cost-volume-profit analysis.
What is the difference between break-even point and payback period? Author: Harold Averkamp, CPA, MBA Definition of Break-Even Point The break-even point is the amount of sales required to cover a company’s costs and...
How do you reduce a company's break-even point? Author: Harold Averkamp, CPA, MBA Definition of Break-even Point The break-even point is the level of sales where a company’s income statement will report exactly zero...
How do you calculate the break-even point in terms of sales? Author: Harold Averkamp, CPA, MBA Definition of Break-even Point in Sales Dollars The break-even point in sales dollars can be calculated by dividing a...
What is credit analysis and financial analysis? Author: Harold Averkamp, CPA, MBA Credit analysis is associated with the decision to grant credit to a customer. It is also part of a bank’s lending procedures for making...
See Explanation of Standard Costing.
Analyzing financial statements by using financial ratios, horizontal analysis, and vertical analysis. To learn more, see Explanation of Financial Ratios.
One component of financial statement analysis. This method involves financial statements reporting amounts for several years. The earliest year presented is designated as the base year and the subsequent years are...
See Explanation of Financial Ratios.
A statistical tool used to determine the coefficients of the two or more independent variables involved in estimating the amount of the dependent variable. It utilizes the least-squares method for determining the...
What is variance analysis? Author: Harold Averkamp, CPA, MBA Definition of Variance Analysis In accounting, a variance is the difference between an actual amount and a budgeted, planned or past amount. Variance analysis...
A section of a publicly traded corporation’s annual report to the SEC (Form 10-K). This section contains extensive information from management about the corporation’s financial condition and its operations.
A type of financial analysis involving income statements and balance sheets. All income statement amounts are divided by the amount of net sales so that the income statement figures will become percentages of net sales....
What is trend analysis? Author: Harold Averkamp, CPA, MBA Definition of Trend Analysis In the analysis of financial information, trend analysis is the presentation of amounts from several years all expressed as a...
Comparable amounts from several years are expressed as a percentage of the amount during a base year. For example, sales from each year of 2014 through 2023 are presented as a percentage of the sales during 2014.
A statistical tool that uses the least-squares method to estimate the fixed and variable components of mixed costs.
What is the difference between vertical analysis and horizontal analysis? Author: Harold Averkamp, CPA, MBA Definition of Vertical Analysis Vertical analysis expresses each amount on a financial statement as a percentage...
How do we deal with a negative contribution margin ratio when calculating our break-even point? Author: Harold Averkamp, CPA, MBA Definition of Negative Contribution Margin A negative contribution margin ratio indicates...
How much of the contribution margin is profit on units sold in excess of the break-even point? Author: Harold Averkamp, CPA, MBA After the break-even point is reached, the entire contribution margin on the next units...
Our Explanation of Financial Ratios includes calculations and descriptions of 15 financial ratios. As you calculate the financial ratios you will also gain a deeper understanding of a company's operations and financial...
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