Interview
Costs and Break-Even Notes - Business GCSEs
- Course
- Institution
- Book
Notes according to the "Cambridge IGCSE and O Level Business Studies 5th edition" textbook on Costs and Break Even for GCSEs (CIE)
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Grade 11 marketing (chapter 11)
-
Business Studies IGCSE/O Level - Full course summary
-
all answers to exam style questions of business book igcse
Seller
Follow
jai-dkosiyabong
Content preview
COSTS A BREAK -EVEN
break -
even
analysis :
a method for finding out the minimum
level of sales necessary for a firm to
cover all of its costs with revenue
↳ at the break -
even point ,
the revenue obtained from the
all the costs out in making and
sale of products equals paid
selling them
↳ when costs are greater than revenue the firm makes a loss
↳ when costs are less than revenue the firm will make a profit
↳ break even
when costs equal revenue the firm will
fixed cost which does as the amount of products
cost a not
change
:
I called overheads )
produced or sold
changes also
↳
examples :
costs are constant at
her rent
EE -
all levels of production
we
rates
be insurance
the salaries output
↳ fixed costs
per
unit of output will decrease as
production
increases (vice versa ) as the same amount of fixed costs can
be shared out over a
larger number of
products
variable cost which changes amount of
cost a as the goods
:
produced or sold
changes
↳ direct costs
examples
: :
Lee materials used in production
ÉÉ iii. ! :
directly involved
in
i.
producing
her
wages ( piece rate ) a product
output
↳ variable costs per unit of production doesn't change
, r
total costs
= total fixed costs + total variable costs
6
Tc T
=Y¥i÷p
""
average
-
É an ,
output
revenue the money that comes in from
selling the goods / services
:
revenue
'
when nothing is
sold , no revenue is
a-
made but as sales
increase , revenue also
increases proportionally
output
break total fixed costs
even point
-
=
contribution unit )
lper
↳
variable cost /per unit )
contribution selling price
-
=
be contribution refers to the amount of
after all variable costs
money remaining
have been subtracted from sales revenue
↳ in units
break even (f) BEP ✗
selling price
point
-
=
↳ BE level of output
margin of
safety actual output -
=
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller jai-dkosiyabong. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R55,91. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67474 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now