What Is a Break Even Analysis?

Answer

Break Even Analysis simply refers to a business formula that is mainly used to calculate the break even point of a business. In economics & business, specifically cost accounting, the break-even point (BEP) is the point where cost and revenue are equal.
3 Additional Answers
Break-even analysis is a technique widely used by production management and management accountants. It is based on categorising production costs between those which are variable (costs that change when the production output changes) and those that are fixed (costs not directly related to the volume of production).
A break even analysis is a technique that is extensively used by production and accountants' management. It is based on categorizing production costs between those which costs change when the production output changes and those that are fixed, costs that are not directly related to the volume of production.
Break even analysis is looking at the variable costs of producing and item and the fixed costs of producing the same item. Then those costs are compared to the sales volume to determine at what point the company does not make any money on the product but also does not lose any money on the product. This is called the break even point. You can find more information here: http://tutor2u.net/business/production/break_even.htm
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