Break-even Analysis - FLASH CARDS

What are the Nature Costs?

What does the 'Target Profit' show?

What is the formula to show how many sales are required to reach the target profit?

What are the 3 methods to calculate break even?

What does table method of calculating the break-even point look like?

What is the formula to work out the break-even point?

What does Graph method of calculating the break-even point look like?

What can break-even be used interpret?

What does the table to interpret what the profit would be after selling
a certain amount of units, look like?

What is the Margin of Safety?

What are the 3 formulas to calculate margin of safety?

What are the Advantages of break-even analysis?

What are the Dis-advantages/ Limitations of break-even analysis?

When do you use Break-even analysis?

Explain why you should use Break-even analysis before starting a new business

Explain why you should use Break-even analysis when making changes within a business

Why is Break-even analysis used?

Explain why you should use Break-even analysis to measure profits and losses

Explain why you should use Break-even analysis to answer 'what if?' questions

Explain why you should use Break-even analysis to evaluate alternative viewpoints

What is the (Contribution sales/Profit Volume) ratio used for?

What does the (Contribution sales/Profit Volume) ratio show?

How is the (Contribution sales/Profit Volume) ratio calculated?

What is the formula used to calculate the (Contribution sales/Profit Volume) ratio?

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Flash cards testing on knowledge of AQA Accounting Unit 4 - Break-even Analysis