This glossary uses Visual Finance™ to bring financial terms to life. Each example shows data from the Round Number Company, a fictional business with simplified figures to make learning easier. For more details, visit 'How to Read Visual Finance'.
Break-Even Analysis looks at the interrelationship of Sales (price and volume), Fixed Cost and Variable Costs. It is typically done as a graphical representation.
The Break-Even Point is the point at which Sales are equal to Total Costs (i.e. Fixed costs plus Variable Costs). It is the combination of sales and costs that yields a no-profit, no-loss situation.
Also known as Break-Even Sales.
The above is our generic explanations of common corporate financial terminology. Actual meanings can vary widely from company to company; in order to have the correct internal definition you need to ask your Finance Department, "What do you mean by that?"
term list.