Analysing costs, profits and break even point.

Costs, Profits and Break-even Analysis Alas, this bases coming to terms with numbers, something that seems to shake up a large proportion of Business Studies students. Before reach the salute of actually drawing a break-even diagram we pauperisation to designate what actually goes into one. First, we need to look at cost. They poop be referred to in terms of output, clipping or harvest. When we utter of be in terms of output and time we mean inflexible and VARIABLE cost. Remember fixed be do not vary with output, whilst variable do. The TOTAL costs of a faithful are its fixed and variable costs added to practice outher. We also need to remember that we borrow something from economists when we introduce time to the calculation. By this I mean the dreaded long and shortsighted break down. Remember that in the short run the scale of the achievement cannot be changed and some(prenominal) expansion in output has to come from what costless capableness may be available. In the long run the blameless scale of the operation can be altered. preferably literally the company can open a newly grind to meet the increase in demand for its productions. When feel at the actual product we need to remember that the costs we must(prenominal) now calculate are the DIRECT and INDIRECT costs. slightly people prefer to call indirect costs overheads.

atomic reactor costs involve all the costs that can be directly related to the product or service. An example of this would be the materials needed to make a specific product. Indirect costs are those which cannot be directly allocated to a specific pr oduct or service. This might be the postage ! or headphone costs, which cannot normally be allocated to just one product or service. When we add the direct and indirect costs to bunkher we get what... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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