finance

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Fixed costs, variable costs, direct costs and indirect cost

• Cost accounting is the accounting function concerned with calculating costs
• Cost is an amount that has to be paid or given up in order to get something
• In business costs are expressed in monetary terms
• In this discussion costs include:
  […]

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Introduction to break even analysis

• It is a simple decision making aid used to discover the level of output/activity that is required before profits are made
• It can also be used to discover the level of activity/output required to achieve a set level of profits
• Break even analysis is […]
  

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Break even analysis the graphical method example

• As has been pointed out there are two approaches to break even analysis
• In this post we will look at the graphical method
• To help make matters clear we will make extensive use of an example below

Shona runs a take-away pizza […]

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Break even analysis using calculations example

• In this topic we will make Break Even related calculations using formula
• This approach can be used in conjunction or instead of the graphical method
• To aid the discussion we will use the example below from a past examination paper:

Shona runs a […]

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Break even analysis: The uses and limitations/weaknesses of break even analysis

• Break even analysis has it’s strengths and weaknesses

Advantages/Uses/Strengths of Break even analysis

• Break even analysis is an important investment appraisal option as it allows management to quickly asses the viability of a proposition
• Margin of safety calculations are […]