Break-even analysis
Break-even analysis is basically concerned with the exact ascertainment of profit thresholds (the break-even points), the requisite data preparation and further related analysis. In the pursuit of this concept, this report addresses the issues of break-even analysis in practical applications. Th...
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| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project |
| Language: | English |
| Published: |
2015
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/62956 |
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| Institution: | Nanyang Technological University |
| Language: | English |
| Summary: | Break-even analysis is basically concerned with the exact ascertainment of profit
thresholds (the break-even points), the requisite data preparation and further related
analysis. In the pursuit of this concept, this report addresses the issues of break-even
analysis in practical applications.
The research methodology adopted involves performing a literature review of books
and journals regarding the current issues and applications of break-even analysis. To
illustrate the practical aspects, three companies which practice break-even analysis
are studied and presented as cases in the report. Through interviews with the key
management personnel, the data gathered were then analyzed to address the issues in
break-even implementation. The scope includes a profile of the companies, their
break-even approaches, the assumptions used in the break-even computations and the
problems that were encountered during implementation.
The results obtained revealed that the break-even model has extensive uses in these
companies. However, due to the fact that the assumptions are rather stringent, the
break-even analyses adopted by the companies are rather simplified. As such, other
techniques are used to supplement the break-even model. |
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