What is "Break Even Analysis" ?

Answer 1

It is a spend money to make money scenario that did not make or lose money. The cost of goods sold were equal to the net profits.

Answer 2

Break even point is the point in a business when the profits starts to pour in and override all the manufacturing costs - both fixed and variable costs. To find out this point using computer modelling or any other form of manual graph or chart so that the owners of the business can find out for how long the owners have to wait to start making money is called break - even analysis.

Answer 3

"Break even analysis" is when someone says, "If make an investment, I'll make back my money (break even) in 2 years, so it must be a good investment." There are problems with this idea, though. Say another investment breaks even in 3 years, but makes tons more money after that. It might be the better investment, even though the break-even time is longer.

So economists usually say that "net present value" or "discounted present value" analysis is a superior way to analyze investments.

Answer 4

Financial analysis of investment opportunity - considers the expenses, resources and risks associated with forecast of return to determine when (and at what level of exposure - financial, risk and opportunity cost) an investment might "break even", in other words, when the resources invested might return enough revenue or income to equal out.

The point being that everything above break even is profit - everything prior to that is simple offset against cost. If an investment never breaks even, it's just a money pit.

Answer 5

Break Even Analysis
An analytical procedure that is carried out to find the "Break Even Point" of a business entity is called "Break Even Analysis"

Break Even Point
That amount of output where a firm would have neither profit nor loss is known as the 'break even point' of that firm.

Answer 6

The analysis to find, the exact time & point, when the Business will break even. That is, on that point, all your investments are recovered and you will start earning profit, next day.

Answer 7

Break-even analysis is a technique widely used by production management and management accountants. It is based on categorising production costs between those which are "variable" (costs that change when the production output changes) and those that are "fixed" (costs not directly related to the volume of production).

Total variable and fixed costs are compared with sales revenue in order to determine the level of sales volume, sales value or production at which the business makes neither a profit nor a loss (the "break-even point").

http://www.tutor2u.net/business/production/break_even.htm

Answer 8

It's the rate of return on your investment that you would need over a given time period to make back the money you invested. If you put $1000 into a business and want to break even in 10 years, you would need a rate of return of 10%, not compounded.

Answer 9

no profit=no loss(in production)
that is "Break Even Analysis"

Answer 10

the point where total revenue received equals the costs associated with the sale of the product