Finance / July 19, 2018 / Alianna Dominguez
The basic idea behind doing a break-even analysis is to calculate the point at which revenues begin to exceed costs. To do this, one must first separate a company's costs into those that are variable and those that are fixed. Fixed costs are costs that do not change with the quantity of output and they are not zero when production is zero. Examples of fixed cost include rent, insurance premiums or loan payments. Variable costs are costs that change with the quantity of output. They are are zero when production is zero. Examples of common variable costs include labor directly involved in a company's manufacturing process and raw materials.
Discount refers to the condition of the price of a bond that is lower than the face value. The discount equals the difference between the price paid for and it’s par value. Discount is a kind of reduction or deduction in the cost price of a product. It is mostly used in consumer transactions, where people are provided with discounts on various products.
We Also Think You’ll Like