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What is mean by break even point in cost accounting? |
decision making in cost accounting Break Even Point (BEP) is the minimum sales you need to generate in order to cover both the fixed and variable cost that arises in a certain period. when your not making or looseing anything at all when you've got enough income to cover your expenses, you break even When business makes no profit or no loss. It's the point where your debt/liabilities evens out with your assests/profits. Or when the company is no longer in debt. |
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