Break even analysis

Cost and management accounting.

(BEP).

In cost and management accounting, break even analysis determines the number of units of production at which contribution is equal to total fixed cost.

This number is known as the break even point.

This analysis can be used, in turn, for the planning of production, pricing, and other strategic decisions.

See also

• Break even point
• Contribution
• Fixed cost
• Margin of safety
• Outturn
• Sensitivity analysis