Accounting For Managers - Management Accounting-Marginal Costing
Cash Break-Even Point-Marginal Costing
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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:
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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