Break-even analysis


Also found in: Medical, Encyclopedia.

Break-even analysis

An analysis of the level of sales at which a project would make zero profit.

Breakeven Analysis

An analysis of a product or company's sales required to neither lose money nor make a profit, but simply to cover costs. A company needs to at least break even in order to make the expense of producing a product worth the effort. As a result, breakeven analysis is an important feature in evaluating the risk of an activity. Breakeven analysis calculates the relationship between the fixed costs, variable costs, and profit of the product.
References in periodicals archive ?
* Break-even: Break-even analysis is one of the simplest yet least used analytical tools in running a business.
Additionally, break-even analysis showed that cost-effectiveness ratios were not sensitive to variations in clinical outcomes.
Other common topic areas for both staff and senior positions are problem solving using spreadsheets, the value of information, cost-volume-profit analysis, break-even analysis, master budgeting, revenue variance and income analysis, problem solving using commercial software, overhead allocation, inventory control, employee compensation systems, management control systems, variance investigation, flexible budgeting, and comparison to financial accounting.
Assessment of cost of care includes break-even analysis, operating costs of NMCs, average charges per patient encounter and per patient visit at NMCs, and cost comparisons between NMCs and the use of emergency rooms, urgent care, and hospital services.
Writing for those professionals and students who have the good fortune to be going to schools that prepare engineers for the real world, they describe the process of finding and analyzing business data that supports engineering projects, covering economic analysis, cost concepts and techniques, economic methods for comparing investment alternatives, asset replacement and retention analysis, depreciation methods, break-even analysis, inflation and taxes, advanced cash-flow analysis, and budgeting and capital allocations.
He/she can also help you work on break-even analysis, business ratios, budgets, etc, which can be used to set realistic financial targets.
Using Break-Even Analysis - Three-hour class on using break-even analysis to boost sales to cover expenses.
Also, JCC's policy didn't specify a minimum threshold, the Auditor General's report said, nor did the college effectively use a break-even analysis to set minimum enrollment.