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Break-even Analysis is a method that revolves around the capability if a firm to decide its production level by looking at the fixed costs and then comparing it to revenues over a certain time period. The accounting students are provided with regular financial management assignments so that they understand all its concepts. The questions provided in the assignments cover theoretical as well as practical concepts. Students often face a lot of challenges and therefore they avail Break-Even Analysis assignment help from BookMyEssay.

What is a Break-Even Analysis?

Break-Even Analysis is a method used majorly by management accountants and production management. It is based on production cost categorization that is fixed (costs that are not directly related to the production volume) and variable (Costs that change as production output changes).

Total fixed costs and variable costs are compared with revenue to determine the sales volume, production or sales value when a business neither makes a profit nor a loss (Break-even point). The Break-even point is a sales activity where there is neither loss or nor profit. In a break-even point, the total cost is equal to sales revenue. It indicates the volume of sales where an operation break-even. Our accounting assignment experts help students to clear their doubts and availing our Break-Even Analysis case study help will reduce your worries and help you to score high grades.


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Components of Break-Even Analysis

The components are discussed in our Break-Even Analysis assignment help online as follows:

Fixed Costs

Fixed costs are the business costs, which are not related to the output or production level directly. If a business has a high output or a zero output, the level of the fixed costs remains the same. However, in the long run, may alter due to investment in production capacity or due to overheads growth needed to support complex and large businesses.

Some of the examples of fixed costs include the following:

  • Depreciation
  • Rent and rates
  • Administration costs
  • Research and Development
  • Marketing costs

Variable Costs

Variable costs are the costs that vary directly with the output level. They show payment inputs including direct labor, raw materials, revenue-related costs, ad fuel. There is a difference between direct variable costs as well as indirect variable costs.

Direct variable costs are the costs that can be attributed directly to the production of a product or service and it is allocated to a cost center. Wages and raw materials are good examples of direct costs.

Indirect variable costs are not attributed directly to production, however, they vary with output. It includes depreciation, labor costs, and maintenance costs. BookMyEssay has a team of expert writers who are providing original Break-Even Analysis essay writing help.

Semi-Variable Costs

The difference between variable and fixed cost is a good way to categorize business costs, but in reality, there are a few costs that are fixed in nature though they increase when the output reaches a certain level. These costs are related to the overall complexity and scale of business. With low output level costs remain fixed but as a business grows, production suddenly rises resulting in a cost being partly fixed and partly variable.

Uses of a Break-Even Analysis

Break-even analysis is used in the following cases and they are highlighted in our help for assignment on Break-Even Analysis as follows:

  • Beginning a new business: When you start a new venture, Break-even Analysis is mandatory. It helps you to decide to be realistic with the costs and offer you guidance about pricing strategy.
  • Manufacturing a new product: For existing businesses, you need this analysis to launch a new product- if a product adds a major expenditure.
  • Change in the business model: When you change your business model, you need a break-even analysis.


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