Daily Archives: 2021-12-03

How to Calculate Break-Even Point: When Youll Turn a Profit

While there are exceptions and complications that could be incorporated, these are the general guidelines for break-even analysis. The main purpose of break-even analysis is to determine the minimum output that must be exceeded for a business to profit. It also is a rough indicator of the earnings impact of a marketing activity. A firm…

Applied Overhead Versus Actual Overhead

Companies account for both types of overheads during different stages in the accounting process. Companies must apply these amounts to their products and services to establish costs. However, that is challenging without knowing the actual overheads as they occur later. We can see that after accounting for the overhead, which was over-allocated to Jobs 1…