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What do you mean Break Even Point in Company ?

Explain its effectiveness in company .

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تم إضافة السؤال من قبل Mohammad Sultan Mahmud , Accounts Manager , Abrar Plastic Industries Ltd
تاريخ النشر: 2014/04/04
صباح حميد غفور سعيد
من قبل صباح حميد غفور سعيد , اداره المحتوى في المؤسسه .المدير العام , منتجه ومصنعه واداره اعمال في الف عافيه هه زار عافيه

Break-even point in the company if equal means that this company is equally divided the profits and losses

Ahmed Abd Alwahab Awad Ibrahim
من قبل Ahmed Abd Alwahab Awad Ibrahim , Chief Accounting , ICCDP

this is the point which Total Revenue equal Total Costthere is no Profit (Zero) & no losses(Zero)

Maria Theresa Gumangan
من قبل Maria Theresa Gumangan , Accounts And Admin Officer , Tecumex Middle East FZCO

The Break-Even Point is  that level of activity where total revenue equals total cost.

Abduh mohsen AL-dheleai
من قبل Abduh mohsen AL-dheleai , مدير ادارة الاستمارات النقدية , الهيئة العامة للتأمينات والمعاشات

In simple words, the break-even point can be defined as a point where total costs (expenses) and total sales (revenue) are equal. Break-even point can be described as a point where there is no net profit or loss. The firm just “breaks even.” Any company which wants to make abnormal profit, desires to have a break-even point. Graphically, it is the point where the total cost and the total.

Jed Adtogan
من قبل Jed Adtogan , Storekeeper , Department of Education

Break Even Point in a company is a level of sales at which the company's profit is zero.  Its effectiveness in company is that it will answer the questions such as how much would the company have to sell to make a profit for a certain period or how much would the company have to sell to avoid incurring a loss.

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