{"id":3526,"date":"2020-02-22T14:41:35","date_gmt":"2020-02-22T14:41:35","guid":{"rendered":"https:\/\/commerceiets.com\/?p=3526"},"modified":"2020-02-22T14:41:35","modified_gmt":"2020-02-22T14:41:35","slug":"break-even-point","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/break-even-point\/","title":{"rendered":"BREAK EVEN POINT"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/break-even-point\/#BREAK_EVEN_POINT\" title=\"BREAK EVEN POINT\">BREAK EVEN POINT<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/break-even-point\/#RELEVANCE_OF_BREAK_EVEN_POINT\" title=\"RELEVANCE OF\nBREAK EVEN POINT\">RELEVANCE OF\nBREAK EVEN POINT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/break-even-point\/#ANALYSIS_OF_BREAK_EVEN_POINT\" title=\"ANALYSIS\nOF BREAK EVEN POINT\">ANALYSIS\nOF BREAK EVEN POINT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/commerceiets.com\/break-even-point\/#METHODS_TO_CALCULATE_BREAK_EVEN_POINTS\" title=\"METHODS\nTO CALCULATE BREAK EVEN POINTS\">METHODS\nTO CALCULATE BREAK EVEN POINTS<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"BREAK_EVEN_POINT\"><\/span><strong>BREAK EVEN POINT<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Break-even point is a point where the total sales or revenue are equal to total costs. In breakeven point, there is no profit or loss in the volume of sales. In other words, it is a point at which no profit no loss situation prevails in the operating activity of a business firm. This indicates that the breakeven point is the minimum level of production at which total cost is recovered and no profit or no loss is sustained.<\/p>\n\n\n\n<p><strong>ACCORDING TO CHARLES T. HORNGREEN<\/strong><\/p>\n\n\n\n<p>\u201cThe break-even point is that point of activity (sales\nvolume) where total revenue and total expenses are equal; it is the point of\nzero profit and zero loss.\u201d<\/p>\n\n\n\n<p><strong>ACCORDING TO G. R. CROWNING SHEILD<\/strong><\/p>\n\n\n\n<p>\u201cBreak-even point is the point at which sales revenue equals\nthe cost to make and sell the product and no profit or loss is reported.\u201d<\/p>\n\n\n\n<p>The following <strong>fundamental formula<\/strong> is used to calculate break-even point:<\/p>\n\n\n\n<p>Break-even Point = Fixed Cost\/ <a href=\"https:\/\/commerceiets.com\/profit-volume-ratio\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"PVratio (opens in a new tab)\">PVratio<\/a><\/p>\n\n\n\n<p>Break-even Point (in units) = Fixed cost \/ <a href=\"https:\/\/commerceiets.com\/contribution\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Contribution (opens in a new tab)\">Contribution<\/a> per unit<\/p>\n\n\n\n<p><strong>Breakeven Point (Sales Volume)<\/strong><\/p>\n\n\n\n<p>Breakeven point in sales can be found out by two methods.<\/p>\n\n\n\n<p>1. Selling Price Method<\/p>\n\n\n\n<p>2. PV Ratio Method<\/p>\n\n\n\n<p><strong>1. Selling Price Method: <\/strong>Under this method Break-even sales volume in rupees is found out through the product of Breakeven Point in units and selling price per unit.<\/p>\n\n\n\n<p>&nbsp;BEP (Rs.) =\nBreak-even Point (units)= Selling price per unit<\/p>\n\n\n\n<p><strong>2. PV Ratio Method: <\/strong>Under this method, break-even sales volume in rupees can be determined through the following ratio<\/p>\n\n\n\n<p>&nbsp;BEP (Rs.) = Fixed\nCost\/ PV ratio<\/p>\n\n\n\n<p>&nbsp;where PV Ratio =\nSales- Variable cost \/SALES<\/p>\n\n\n\n<p>OR<\/p>\n\n\n\n<p>Contribution \/ Sales<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"RELEVANCE_OF_BREAK_EVEN_POINT\"><\/span><strong>RELEVANCE OF\nBREAK EVEN POINT<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The breakeven\npoint is useful in the following situations:<\/p>\n\n\n\n<ul><li>To determine the amount of remaining capacity\nafter the breakeven point is reached, which tells you the maximum amount of profit\nthat can be generated.<\/li><li>To determine the impact on profit if\nautomation (a fixed cost) replaces labor (a variable cost)<\/li><li>To determine the change in profits if product\nprices are altered<\/li><li>To determine the amount of losses that could\nbe sustained if the business suffers a sales downturn<\/li><\/ul>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"ANALYSIS_OF_BREAK_EVEN_POINT\"><\/span><strong>ANALYSIS\nOF BREAK EVEN POINT<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Management\nshould constantly monitor the breakeven point, particularly in regard to the\nlast item noted, in order to reduce the breakeven point whenever possible. Ways\nto do this include:<\/p>\n\n\n\n<ul><li><strong><em>Cost analysis:<\/em> <\/strong>Continually review all fixed costs, to see if any can be eliminated. Also review variable costs to see if they can be eliminated, since doing so increases margins and reduces the breakeven point.<\/li><li><strong><em>Margin analysis<\/em>: <\/strong>Pay close attention to product margins, and push sales of the highest-margin items, to reduce the breakeven point.<\/li><li><strong><em>Outsourcing<\/em>:<\/strong> If an activity involves a fixed cost, consider outsourcing it in order to turn it into a per-unit variable cost, which reduces the breakeven point.<\/li><li><strong><em>Pricing<\/em>:<\/strong> Reduce or eliminate the use of coupons or other price reductions, since it increases the breakeven point. Also, increase price points whenever this is acceptable to customers.<\/li><\/ul>\n\n\n\n<p>To calculate the breakeven point, divide total fixed\nexpenses by the contribution margin. Contribution margin is sales minus all\nvariable expenses, divided by sales. The formula is:<\/p>\n\n\n\n<p><strong>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed expenses\/&nbsp;Contribution margin % &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/strong><\/p>\n\n\n\n<p>The Break Even Point is shown as follows:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"171\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/bep.jpg\" alt=\"break even analysis graph\" class=\"wp-image-3508\"\/><\/figure>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"METHODS_TO_CALCULATE_BREAK_EVEN_POINTS\"><\/span><strong>METHODS\nTO CALCULATE BREAK EVEN POINTS<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The sales volume which equates total revenue with related costs\nand results in neither profit nor loss is <\/p>\n\n\n\n<p>called break-even point (BEP). Break-even point can be determined\nby the following methods: <\/p>\n\n\n\n<p><strong>1. Algebraic methods: <\/strong><\/p>\n\n\n\n<p>&nbsp;(i) Contribution Margin\nApproach <\/p>\n\n\n\n<p>&nbsp;(ii) Equation technique <\/p>\n\n\n\n<p><strong>2. Graphic presentation: <\/strong><\/p>\n\n\n\n<p>&nbsp;(i) Break-even chart <\/p>\n\n\n\n<p>&nbsp;(ii) Profit volume chart<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong>ALGEBRAIC\nMETHODS<\/strong><\/p>\n\n\n\n<p><strong>1. Contribution Margin Approach: <\/strong>The break-even point under this approach can be calculated as follows:<\/p>\n\n\n\n<p><strong>Break-even\npoint (in units) = <\/strong>Total fixed costs\/ (Selling price per unit -Variable\ncost per unit)<\/p>\n\n\n\n<p>Or <\/p>\n\n\n\n<p>Total fixed costs\/ Contribution per unit<\/p>\n\n\n\n<p><strong>Break even\npoint (In Rupees)= <\/strong>Fixed Cost\/ PV Ratio<\/p>\n\n\n\n<p>Or<\/p>\n\n\n\n<p>Beak-even points (units) \u00d7 Selling price per unit<\/p>\n\n\n\n<p><strong>2. Equation Technique: <\/strong>It is based on an income equation i.e. <\/p>\n\n\n\n<p><strong>&nbsp;Sales \u2013 Total costs = Net profit. <\/strong><\/p>\n\n\n\n<p><strong>&nbsp;<\/strong>Breaking up total costs into fixed and\nvariable, <\/p>\n\n\n\n<p>&nbsp;Sales \u2013 Fixed costs \u2013\nVariable cost = Net profit <\/p>\n\n\n\n<p>&nbsp;Sales = Fixed costs +\nVariable cost + Net profit <\/p>\n\n\n\n<p>&nbsp;i.e.&nbsp; SP(S) = FC + VC(S) + P <\/p>\n\n\n\n<p>&nbsp;where <\/p>\n\n\n\n<p>&nbsp;SP = Selling price per unit\n<\/p>\n\n\n\n<p>&nbsp;S = Number of units\nrequired to be sold to break-even <\/p>\n\n\n\n<p>&nbsp;FC = Total fixed costs <\/p>\n\n\n\n<p>&nbsp;VC = Variable cost per unit\n<\/p>\n\n\n\n<p>&nbsp;P = Net profit (Zero) <\/p>\n\n\n\n<p>&nbsp;SP(S) = FC + VC(S) + Zero <\/p>\n\n\n\n<p>&nbsp;SP(S) = FC + VC(S) + 0 <\/p>\n\n\n\n<p>&nbsp;SP(S) \u2013 VC(S) = FC <\/p>\n\n\n\n<p>&nbsp;or <\/p>\n\n\n\n<p><strong>&nbsp;<\/strong>S(SP \u2013 VC) = FC<\/p>\n\n\n\n<p>S= FC\/ (SP-VC)<\/p>\n\n\n\n<p>To calculate the level of sales required to earn a particular\nlevel of profit, the formula is:<\/p>\n\n\n\n<p>Required Sales (In Rupees)= (Fixed Cost + Desired Profit)\/ PV\nRatio<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong>GRAPHIC\nPRESENTATION<\/strong><\/p>\n\n\n\n<p><strong>1. Break-even chart <\/strong><\/p>\n\n\n\n<p><strong>ACCORDING\nTO THE CHARTERED INSTITUTE OF MANAGEMENT ACCOUNTANTS, LONDON <\/strong><\/p>\n\n\n\n<p><strong>\u201c<\/strong>The\nbreak-even chart means a chart which shows profit or loss at various levels of\nactivity, the level at which neither profit nor loss is shown being termed as\nthe break-even point\u201d. <\/p>\n\n\n\n<p>It is a graphic relationship between costs, volume and profits. It\nshows not only the BEP but also the effects of costs and revenue at varying\nlevels of sales. The break-even chart can therefore, be more appropriately called\nthe cost-volume-profit graph. <\/p>\n\n\n\n<p><strong>Assumptions\nregarding Break even charts<\/strong><\/p>\n\n\n\n<p>Assumptions regarding Break-Even Charts are as under: <\/p>\n\n\n\n<p>&nbsp;(i) Costs are bifurcated\ninto variable and fixed components. <\/p>\n\n\n\n<p>&nbsp;(ii) Fixed costs will\nremain constant and will not change with change in level of output. <\/p>\n\n\n\n<p>&nbsp;(iii) Variable cost per\nunit will remain constant during the relevant volume range of graph. <\/p>\n\n\n\n<p>&nbsp;(iv) Selling price will\nremain constant even though there may be competition or change in volume of\nproduction. <\/p>\n\n\n\n<p>&nbsp;(v) The number of units\nproduced and sold will be the same so that there is no operating or closing\nstock. <\/p>\n\n\n\n<p>&nbsp;(vi) There will be no\nchange in operating efficiency. <\/p>\n\n\n\n<p>&nbsp;(vii) In case of\nmulti-product companies, it is assumed that the sales mix remains constant. <\/p>\n\n\n\n<p>A break-even chart can be presented in different forms.<\/p>\n\n\n\n<p><strong>First\nMethod of Break even chart<\/strong><\/p>\n\n\n\n<p>On the X-axis of the graph is plotted the volume of productions or the quantities of sales and on the Y-axis (vertical line) costs and sales revenues are represented. The fixed costs line is drawn parallel to X-axis. The variable costs for different levels of activity are plotted over the fixed cost line, which shows that the cost is increasing with the increase in the volume of output. The variable cost line is joined to fixed cost line at zero volume of production. <\/p>\n\n\n\n<p>This line is regarded as the total cost line. Sales values at various levels of output are plotted from the origin and joined is called the sales line. The sales line will cut the total cost line at a point where the total costs equal to total revenues and this point of intersection of two lines is known as breakeven point or the point of no profit no loss. The lines produced from the inter-section to Y-axis and X-axis may give sales value and the number of units produced at break-even point respectively. <\/p>\n\n\n\n<p>Loss and profit are as have been shown in the chart which shows that if production is less than the break-even point, the business shall be running at a loss and if the production is more than the breakeven level, there will be profit. The angle which the sales line makes with total cost line while intersecting it at BEP is called <strong>angle of incidence<\/strong>. A large angle of incidence denotes a good profit position of a company.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"706\" height=\"637\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/first-method-break-even-charts.png\" alt=\"first method- break even charts\" class=\"wp-image-3540\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/first-method-break-even-charts.png 706w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/first-method-break-even-charts-300x271.png 300w\" sizes=\"(max-width: 706px) 100vw, 706px\" \/><\/figure>\n\n\n\n<p><strong>Second\nMethod of Break even chart<\/strong><\/p>\n\n\n\n<p>This is variation of the first method in which variable cost line is drawn first and thereafter drawing the fixed cost line above the variable cost line. The later line will be the total cost line. The sales line is drawn as usual. The added advantage of this method is that contributions at various levels of output are automatically depicted in the chart.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"455\" height=\"235\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/second-method-break-even-chart.gif\" alt=\"second method- break even chart\" class=\"wp-image-3538\"\/><\/figure>\n\n\n\n<p><strong>Contribution break-even chart<\/strong><\/p>\n\n\n\n<p>The chart helps in ascertaining the amount of contribution at different levels of activity besides the break-even point. In this method, the fixed cost line is drawn parallel to the X-axis. The contribution line is then drawn from the origin which goes up with the increase in output. The sales line is plotted as usual, but the question of intersection of sales line with cost line does not arise. <\/p>\n\n\n\n<p>The contribution line crosses the fixed cost line and the point of intersection is treated as break-even point. At this point, contribution is equal to fixed expenses and there is no profit or loss. If the contribution is more than the fixed expenses, profit will arise and if the contribution is less than the fixed expenses, loss will arise.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"378\" height=\"285\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/contribution-break-even-chart.jpg\" alt=\"contribution break even chart\" class=\"wp-image-3536\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/contribution-break-even-chart.jpg 378w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/contribution-break-even-chart-300x226.jpg 300w\" sizes=\"(max-width: 378px) 100vw, 378px\" \/><\/figure>\n\n\n\n<p><strong>2. Profit-volume Graph<\/strong><\/p>\n\n\n\n<p>Profit volume graph is the graphical representation of the\nrelationship between profit and volume. Separate lines for costs and revenues\nare eliminated from the P\/V graph as only profit points are plotted. It is\nbased on the same information as is required for the traditional break-even\nchart and is characterized by the same limitations. The steps in the\nconstruction of profit volume graph are as follows: <\/p>\n\n\n\n<ul><li>Profit and fixed costs are represented on the vertical axis. <\/li><li>Sales are shown on the horizontal axis. <\/li><li>The sale line divides the graph into two parts both horizontally and vertically. The area above the horizontal line is the \u2018profit area\u2019 and that below it is the \u2018loss area\u2019 at which fixed costs are represented on the vertical axis below the sale line and profits on the same axis above the sale line.<\/li><li>Profits and fixed costs are plotted for corresponding sales volume and the points are joined by a line which is the profit line.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"293\" height=\"399\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/profit-volume-graph.jpg\" alt=\"profit volume graph\" class=\"wp-image-3535\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/profit-volume-graph.jpg 293w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/profit-volume-graph-220x300.jpg 220w\" sizes=\"(max-width: 293px) 100vw, 293px\" \/><\/figure>\n\n\n\n<p><strong>JOIN THE CHANNEL ON TELEGRAM<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/t.me\/commerceiets\" target=\"_blank\">https:\/\/t.me\/commerceiets<\/a><\/p>\n\n\n\n<p><strong>CONNECT ON LINKEDIN<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noopener\">https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/<\/a><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/cost-accounting\/\">Cost Accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scope-of-cost-accounting-pdf\/\">Scope of cost accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/elements-of-cost\/\">Elements of cost<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/types-of-cost\/\">Types of cost<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/material-control-in-cost-accounting-pdf\/\">Material control<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/perpetual-inventory-system\/\">Perpetual inventory system<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/pricing-of-materials\/\">Pricing of materials<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/bin-card\/\">Bin Card<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/store-ledger\/\">Stores Ledger<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/incentive-plans\/\">Incentive plans<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/overhead\/\">Overheads<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-treatment-of-idle-time\/\">Idle time<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/system-of-wage-payment-in-cost-accounting\/\">System of wage payment in cost accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-time-rate-system-and-piece-rate-system\/\">Time rate vs piece rate wage system<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cost-centre\/\">Cost Center<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/labor-turnover\/\">Labour Turnover<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/difference-between-management-accounting-and-cost-accounting\/\">Difference between management accounting and cost accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/allocation-and-apportionment-of-overheads\/\">Allocation and apportionment of overheads<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-allocation-and-apportionment-of-overheads\/\">Allocation vs Apportionment of overheads<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/absorption-of-overheads\/\">Absorption of overheads<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/over-absorption-and-under-absorption-of-overheads\/\">Over absorption and under absorption of overheads<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/activity-based-costing\/\">Activity based costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-traditional-costing-and-activity-based-costing\/\">Traditional costing vs ABC system<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/reconciliation-of-accounts\/\">Reconciliation of accounts<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/unit-costing\/\">Unit costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cost-sheet-format\/\">Cost sheet format<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cost-sheet-vs-production-account\/\">Cost sheet vs production sheet<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/job-costing\/\">Job costing<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/batch-costing\/\">Batch Costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-job-costing-and-batch-costing\/\">job costing vs batch costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/contract-costing\/\">Contract costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-job-costing-and-contract-costing\/\">Job Costing vs Contract costing<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/process-costing\/\">Process Costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/process-costing-vs-job-costing\/\">Process costing vs job costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/joint-products\/\">Joint products<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/by-products\/\">By Product&nbsp;<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/equivalent-production\/\">Equivalent production<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/marginal-costing\/\">Marginal costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/applications-of-marginal-costing\/\">Application of marginal costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cost-volume-profit-analysis\/\">Cost volume profit analysis<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/tools-and-techniques-of-marginal-costing\/\">Tools and techniques of marginal costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/budget\/\">Budget<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/break-even-point\/\">Break even point<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/process-of-budgetary-control\/\">Process of budgetary control<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/explain-the-advantages-and-limitations-of-budgetary-control\/\">Advantages and limitations of budgetary control<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/budgetary-control\/\">Budgetary Control<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/zero-base-budgeting\/\">Zero base budgeting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/standard-costing\/\">Standard Costing<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/variance-analysis\/\">Variance Analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-standard-costing-and-budgetary-control\/\">Standard costing vs budgetary control<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-management-accounting-and-cost-accounting\/\">Management accounting vs cost accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-financial-accounting-management-accounting-and-cost-accounting\/\">Cost accounting vs financial accounting<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>BREAK EVEN POINT Break-even point is a point where the total sales or revenue are equal to total costs. In breakeven point, there is no profit or loss in the volume of sales. In other words, it is a point at which no profit no loss situation prevails in the operating activity of a business&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/break-even-point\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;BREAK EVEN POINT&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":3534,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[187],"tags":[],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3526"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=3526"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3526\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/3534"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=3526"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=3526"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=3526"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}