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Financial Terms | |
Break-Even |
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Definition of Break-EvenBreak-EvenThis is a term used to describe a point at which revenues equal costs.
Related Terms:Break-even analysisAn analysis of the level of sales at which a project would make zero profit. break-even analysisAnalysis of the level of sales at which the company breaks even. Break-Even AnalysisAn 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). break-even charta graph that depicts the relationships among revenues, variable costs, fixed costs, and profits (or losses) Break-even lease paymentThe lease payment at which a party to a prospective lease is indifferent between Break-even payment rateThe prepayment rate of a MBS coupon that will produce the same CFY as that of break-even point (BEP)the level of activity, in units or dollars, at which total revenues equal total costs ![]() Break-even tax rateThe tax rate at which a party to a prospective transaction is indifferent between entering Break-even timeRelated: Premium payback period. Cash-flow break-even pointThe point below which the firm will need either to obtain additional financing Breakeven pointThe point at which total costs equal total revenue, i.e. where there is neither a profit nor a loss. breakeven pointThe annual sales volume level at which total contribution Breakeven pointThe sales level at which a company, division, or product line makes a BreakA rapid and sharp price decline. BreakoutA rise in a security's price above a resistance level (commonly its previous high price) or drop Deal BreakerA 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. ![]() Evening upBuying or selling to offset an existing market position. Event riskThe risk that the ability of an issuer to make interest and principal payments will change because Event studyA statistical study that examines how the release of information affects prices at a particular time. Events of defaultContractually specified events that allow lenders to demand immediate repayment of a debt. Fictitious RevenueRevenue recognized on a nonexistent sale or service transaction. Group of seven (G7/G-7)The G-5 countries plus Canada and Italy. incremental revenuethe revenue resulting from an additional contemplated sale Industrial revenue bond (IRB)Bond issued by local government agencies on behalf of corporations. Internal Revenue CodeRefers to all federal tax laws as a group. Internal Revenue ServiceA federal agency empowered by Congress to interpret and enforce tax-related laws. NET SALES (revenue)The amount sold after customers’ returns, sales discounts, and other allowances are taken away from Premature RevenueRevenue recognized for a confirmed sale or service transaction in a period prevention costa cost incurred to improve quality by preventing Realizable Revenue A revenue transaction where assets received in exchange for goods andservices are readily convertible into known amounts of cash or claims to cash. Realized RevenueA revenue transaction where goods and services are exchanged for cash or RevenueIncome earned from the sale of goods and services. RevenueAmounts earned by the company from the sale of merchandise or services; often used interchangeably with the term sales. RevenueAn inflow of cash, accounts receivable, or barter from a customer in exchange Revenue bondA bond issued by a municipality to finance either a project or an enterprise where the issuer revenue centera 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 revenue-driven expensesOperating expenses that vary in proportion to Revenue fundA fund accounting for all revenues from an enterprise financed by a municipal revenue bond. Revenue RecognitionThe act of recording revenue in the financial statements. Revenue should Sales Revenue Revenue recognized from the sales of products as opposed to the provision ofservices. Service RevenueRevenue recognized from the provision of services as opposed to the sale of Total revenueTotal sales and other revenue for the period shown. Known as "turnover" in the UK. Unearned revenueMoney that has been paid by customers for work yet to be done or goods yet to be provided. Unearned revenueA payment from a customer that cannot yet be recognized as earned contribution marginAn intermediate measure of profit equal to sales revenue fixed expenses (costs)Expenses or costs that remain the same in amount, Margin of safetyA measure of the difference between the anticipated and breakeven levels of activity. margin of safetythe excess of the budgeted or actual sales Premium1) Amount paid for a bond above the par value. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |