breakeven analysis

Definition

Study of the mathematical relationship between costs and sales revenue, under a given set of assumptions regarding the firm's fixed costs and variable costs. In this financial analysis, the objective is to determine (in manufacturing) number of products that must be sold at a given price to cover the costs, or (in project financing) number of months or years required by the forecasted total net cash flow to equal estimated total project cost. An integral part of financial planning, it is performed either by using a breakeven-formula or by drawing a breakeven graph.

单词	breakeven analysis
释义	breakeven analysis Definition Study of the mathematical relationship between costs and sales revenue, under a given set of assumptions regarding the firm's fixed costs and variable costs. In this financial analysis, the objective is to determine (in manufacturing) number of products that must be sold at a given price to cover the costs, or (in project financing) number of months or years required by the forecasted total net cash flow to equal estimated total project cost. An integral part of financial planning, it is performed either by using a breakeven-formula or by drawing a breakeven graph.
随便看	internal benchmarking internal check internal claim internal communication internal control internal cost analysis internal customer internal data internal deliverable internal economies of scale internal environment internal equity internal expansion internal factors internal failure costs internal financing internal funds internal income internalization internalizing an externality internal marketing internal rate of return (IRR) internal recovery internal recruitment internal revenue