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Break-even analysis

Break-even analysis is the comparison of revenues and expenses of both fixed and variable costs in order to identify the point at which revenues cover all expenses. When comparing the costs associated with different production methods, as in manual versus automation, the volume where the cost is the same is referred to as the point of indifference. Break-even analysis finds the break-even point, which is the volume at which revenues exceed total costs.

Break-even analysis

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