Accounting For Managers - Management Accounting-Marginal Costing
Cash Break-Even Point-Marginal Costing
Posted On : 02.05.2018 10:40 pm
Cash Break-Even Point
Cash Break-Even Point
It is the level of output or sales where the cash
inflow will be equivalent to cash needed to meet immediate cash liabilities. To
this end, fixed costs have to be divided into two parts (i) fixed cost which do
not need immediate cash outlay (depreciation etc.) And (ii) fixed cost which
need immediate cash outlay (rent etc.). Cash break-even point can be calculated
thus: Tags : Accounting For Managers - Management Accounting-Marginal Costing
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