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Define break even point. and How the accountant improve his reports with it?

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تم إضافة السؤال من قبل Ahmed kandil , Cost Controller , Battour Holding Cpompany
تاريخ النشر: 2014/09/05
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Hello,

 

Break even point = the moment for a company when the income equals the expenses, so the profit is0.

 

Starting that point, according to decisions made inside the company, the income statement will show a profit or loss at the end of the period.

 

In the economic theory it is said that the break even point should occur in first part of the analyzed period, so the company would work on profit as soon as possible.

 

Thank you

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