|break-even point (BEP)|
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Definition of break-even point (BEP)
break-even point (BEP)
the level of activity, in units or dollars, at which total revenues equal total costs
In the bond market, the smallest measure used for quoting yields is a basis point. Each percentage
A conventional unit of measure for bond prices set at $10 and equivalent to 1% of the $100 face
A rapid and sharp price decline.
An analysis of the level of sales at which a project would make zero profit.
The lease payment at which a party to a prospective lease is indifferent between
The prepayment rate of a MBS coupon that will produce the same CFY as that of
The tax rate at which a party to a prospective transaction is indifferent between entering
Related: Premium payback period.
A rise in a security's price above a resistance level (commonly its previous high price) or drop
The point below which the firm will need either to obtain additional financing
Those points designated by futures exchanges at which the financial instrument or
Buying or selling to offset an existing market position.
The risk that the ability of an issuer to make interest and principal payments will change because
A statistical study that examines how the release of information affects prices at a particular time.
Contractually specified events that allow lenders to demand immediate repayment of a debt.
Group of seven (G7/G-7)
The G-5 countries plus Canada and Italy.
Industrial revenue bond (IRB)
Bond issued by local government agencies on behalf of corporations.
The smallest unit of price change quoted or, one one-hundredth of a percent. Related: minimum price
Point and figure chart
A price-only chart that takes into account only whole integer changes in price, i.e., a
Price value of a basis point (PVBP)
Also called the dollar value of a basis point, a measure of the change in
A bond issued by a municipality to finance either a project or an enterprise where the issuer
A fund accounting for all revenues from an enterprise financed by a municipal revenue bond.
Total sales and other revenue for the period shown. Known as "turnover" in the UK.
NET SALES (revenue)
The amount sold after customers’ returns, sales discounts, and other allowances are taken away from
The point at which total costs equal total revenue, i.e. where there is neither a profit nor a loss.
Income earned from the sale of goods and services.
Amounts earned by the company from the sale of merchandise or services; often used interchangeably with the term sales.
Money that has been paid by customers for work yet to be done or goods yet to be provided.
The annual sales volume level at which total contribution
Operating expenses that vary in proportion to
One one-hundredth of one percent
a graph that depicts the relationships among revenues, variable costs, fixed costs, and profits (or losses)
the revenue resulting from an additional contemplated sale
the level of inventory that triggers the placement
a cost incurred to improve quality by preventing
a responsibility center for which a manager is accountable only for the generation of revenues and has no control over setting selling prices, or budgeting or incurring costs
the point at which the outputs of a joint process are first identifiable or can be separated as individual products
One hundredth of one percentage point, or 0.0001.
Point and figure chart
A financial chart usually used to plot asset price data.
The sales level at which a company, division, or product line makes a
An inflow of cash, accounts receivable, or barter from a customer in exchange
The point in a production process when clearly identifiable joint costs
A payment from a customer that cannot yet be recognized as earned
Analysis of the level of sales at which the company breaks even.
One one-hundredth of a percentage point, used to express variations in yields. For example, the difference between 5.36 percent and 5.38 percent is 2 basis points.
The trough or peak of a business cycle.
Internal Revenue Code
Refers to all federal tax laws as a group.
Internal Revenue Service
A federal agency empowered by Congress to interpret and enforce tax-related laws.
Revenue recognized on a nonexistent sale or service transaction.
Free-on-Board (FOB) Shipping Point
A shipping arrangement agreed to between buyer and
Revenue recognized for a confirmed sale or service transaction in a period
Realizable Revenue A revenue transaction where assets received in exchange for goods and
services are readily convertible into known amounts of cash or claims to cash.
A revenue transaction where goods and services are exchanged for cash or
The act of recording revenue in the financial statements. Revenue should
Sales Revenue Revenue recognized from the sales of products as opposed to the provision of
Revenue recognized from the provision of services as opposed to the sale of
Order penetration point
The point in the production process when a product is
Outbound stock point
A designated inventory location on the shop floor between
A delivery of stock to a location in or near the shop floor
The storage of stock in a location in or near the shop floor
An inventory storage area used for short-term inventory staging.
This is a term used to describe a point at which revenues equal costs.
An analytical technique for studying the relationships between fixed cost, variable cost, and profits. A breakeven chart graphically depicts the nature of breakeven analysis. The breakeven point represents the volume of sales at which total costs equal total revenues (that is, profits equal zero).
A deal breaker is a significant issue relating to the proposed financing between the prospective investor and the entrepreneur that needs to be resolved in order to close the deal.
point of sale (POS)
The terminal at which a customer uses his/her debit card to make a direct payment transaction. See also Interac Direct Payment.
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