Breakeven analysis Flashcards
1
Q
Breakeven analysis
A
An analysis of costs, volume and profit at various levels of activity. Also known as cost-volume-profit (CVP) analysis
2
Q
Breakeven point
A
Number of units sold at which neither a profit nor a loss is made
3
Q
Margin of safety
A
The difference in units between the budgeted sales volume and the breakeven sales volume
4
Q
Limiting factor
A
Anything that limits the activity of a business
5
Q
Outsourcing
A
The use of external suppliers as a source of finished products, components or services
