Understanding the behaviour of costs as the trading patterns in a business change is an area of vital importance to decision makers. To be able to control costs and to see how they behave under changing conditions first it is essential to identify the different types of cost. Fixed costs Fixed costs are costs that…
Your business is “breaking even”—not making a profit but not losing money, either. The main purpose is to determine the minimum output that must be exceeded for a business to profit. The break-even analysis is a rough indicator of the earnings impact of a marketing activity. A company can analyse ideal output levels to be…