BUSINESS GLOSSARY 2022 SERIES

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It is used in cost accounting. The BEP is when total cost and total revenue are equal, which means no loss or gain.

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Breakeven point helps to determine the unit of sales or revenue required to cover total cost.

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So, when a company reaches BEP it is not incurring any loss neither making profit. So it is equal i.e. even

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Fixed Costs / (Sales Price Per Unit – Variable Costs Per Unit)

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BEP FOR SALES

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To quantify the minimum output that must be exceeded to make a business profitable.

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Increase/Decrease in sales.

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BUSINESS GLOSSARY 2022 SERIES

NO PROFIT NO LOSS

It is used in cost accounting. The BEP is when total cost and total revenue are equal, which means no loss or gain.

Breakeven point helps to determine the unit of sales or revenue required to cover total cost.

So, when a company reaches BEP it is not incurring any loss neither making profit. So it is equal i.e. even

Fixed Costs / (Sales Price Per Unit – Variable Costs Per Unit)

BEP PER UNIT

Number of goods need to get sold to reach BEP

BEP FOR SALES

Fixed Costs / [(Sales – Variable Costs) / Sales]

Amount of income needed to bring in to reach BEP

To quantify the minimum output that must be exceeded to make a business profitable.

Increase/Decrease in sales.

Increase/Decrease in production cost

Increase/Decrease in operational cost

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