break even

HideShow resource information
BREAK-EVEN CHART
a line graph showing total revenues and total costs at all possible levels of output or demand from zero to maximum capacity
1 of 5
CONTRIBUTION
total revenue less variable costs. the calculation of contribution is useful for businesses whih are responsible for a range of products
2 of 5
FIXED COSTS
fixed costs are any costs that do not vary directly with the level of output, for exampe rent and rate
3 of 5
MARGIN OF SAFETY
the amount by which current output exceeds the level of output necessary to break even
4 of 5
VARIABLE COSTS
those costs hich vary directly with the level of output. they represent payments made for the use of inputs suh as labour, fuel and raw materials
5 of 5

Other cards in this set

Card 2

Front

total revenue less variable costs. the calculation of contribution is useful for businesses whih are responsible for a range of products

Back

CONTRIBUTION

Card 3

Front

fixed costs are any costs that do not vary directly with the level of output, for exampe rent and rate

Back

Preview of the back of card 3

Card 4

Front

the amount by which current output exceeds the level of output necessary to break even

Back

Preview of the back of card 4

Card 5

Front

those costs hich vary directly with the level of output. they represent payments made for the use of inputs suh as labour, fuel and raw materials

Back

Preview of the back of card 5

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Financial Planning resources »