Break even point: Break-Even Point Definition The Break-even

Break-Even Point Definition The Break-even point (BEP) is the level of production where the company’s total revenues and expenses are equal. At the BEP, the revenue of the company by the sale of manufactured products is equal to the total costs incurred in manufacturing the product. In accounting terms, at this point , the company’s total profit is zero. So it is a situation where there is no profit, no loss to the company. Take an example for BEP; if the total revenues of ABC Ltd. are ... In this unit you will learn about the concept of break-event point and finding out of break even point through mathematical equation and graphic representation You will be acquainted with the relationship between Cost, Volume and Profit and its impact on planning and evaluation of business operations. You will also study the concepts of margin of safety, angle of incidence, limiting factor and profit volume ratio in decision making. The unit also deals with the underlying assumptions of ... In accounting and business, the breakeven point (BEP ) is the production level at which total revenues equal total expenses. Break-even point The Break-Even Point 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 ".