BREAK-EVEN EQUATION Definition

Bookmark and Share

BREAK-EVEN EQUATION is the equation that determines BREAK-EVEN POINT. Let p = unit selling price, v = unit variable cost, FC = total fixed costs, x = sales in units. The equation: px = vx + FC.

Learn new Accounting Terms

UNALLOCATED COSTS represents corporate costs not associated either directly or indirectly in providing a product or service for sale. Unallocated costs are not included in the calculation of COST OF GOODS SOLD.

PAYABLE is an amount awaiting payment to be made, e.g. interest payable or taxes payable.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.