COST ACCOUNTING
BREAK EVEN POINT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When there is no profit or loss
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When there is profit and loss
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When there is revenue and loss
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When there is a loss
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Detailed explanation-1: -Break-even (or break even), often abbreviated as B/E in finance, (sometimes called point of equilibrium) is the point of balance making neither a profit nor a loss. Any number below the break-even point constitutes a loss while any number above it shows a profit.
Detailed explanation-2: -The break-even point is the point at which total cost and total revenue are equal, meaning there is no loss or gain for your small business.
Detailed explanation-3: -The break-even point is the point at which total revenue is equal to total cost. At this point, the profit is zero. (A particular company neither makes nor loses money at this point).
Detailed explanation-4: -The break-even point (BEP) in economics, business-and specifically cost accounting-is the point at which total cost and total revenue are equal, i.e. “even". There is no net loss or gain, and one has “broken even", though opportunity costs have been paid and capital has received the risk-adjusted, expected return.
Detailed explanation-5: -The break-even point indicates the point at which the costs (e.g. for the production of a product) are equal to the revenue generated by the sale. This means that the break even point is exactly £0 in total. From the point at which the break-even point is exceeded, the company makes a profit through the sale.