# Tag Archives | Break-Even Analysis

## Advantages of Break Even Analysis | Profits | Economics

Beyond linearity, other simplifying assumption limits the advantages of break-even analysis; actual costs incurred(fixed and variable) are substi­tuted for opportunity costs; the business environment is taken as static, that is factors other than volume affecting revenues and costs, such as demand and technology, are assumed to be insignificant; still more im­portantly, risk and uncertainly are ignored. However, some simple as­sumptions [...]

By |2017-01-13T05:58:21+05:30January 13, 2017|Firm|Comments Off on Advantages of Break Even Analysis | Profits | Economics

## Break-Even Analysis: Introduction, Assumptions and Limitations

In this article we will discuss about:- 1. Introduction to Break-Even Analysis 2. Assumptions of Break-Even Analysis 3. Limitations. Introduction to Break-Even Analysis: Break-even analysis is of vital importance in determining the practical application of cost func­tions. It is a function of three factors, i.e., sales volume, cost and profit. It aims at classifying the dynamic relationship existing between total [...]

By |2016-08-18T11:10:57+05:30August 18, 2016|Break-Even Analysis|Comments Off on Break-Even Analysis: Introduction, Assumptions and Limitations

## Break-Even Point of a Firm: Meaning, Determination and Types

In this article we will discuss about:- 1. Meaning of Break-Even Point 2. Determination of Break-Even Point 3. Types. Meaning of Break-Even Point: The break-even point may be defined as that level of sales in which total revenues equal total costs and net income is equal to zero. This is also known as no-profit no-loss point. This concept has been [...]

By |2016-08-18T11:11:03+05:30August 18, 2016|Break-Even Analysis|Comments Off on Break-Even Point of a Firm: Meaning, Determination and Types
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