In a break even analysis, why divide costs into fixed costs and variable costs?

！！！Break-even analysis is a method of analyzing the equilibrium relationship between project costs and benefits through the break-even point (BEP). Changes in various uncertain factors (such as investment, cost, sales volume, product**, project life, etc.) will affect the economic effect of the investment plan, and when the change of these factors reaches a certain critical value, it will affect the trade-off of the plan.

The purpose of break-even analysis is to find out this critical value, that is, the break-even point (BEP), to determine the tolerance of the investment plan to uncertain changes, and to provide a basis for decision-making. The lower the break-even point, the greater the probability of the project's profitability and the smaller the possibility of loss, so the project has a greater ability to resist business risks. Because break-even analysis is to analyze the relationship between output (sales), cost and profit, so weigh the cost and profit analysis.

The break-even point can be expressed in a variety of ways. It can be expressed in terms of physical output, selling price per unit of product, variable cost per unit of product, and total annual fixed costs, or it can be expressed in relative quantities such as capacity utilization (break-even point ratio). Among them, the utilization rate of output and production capacity is widely used in project uncertainty analysis.

According to whether there is a linear relationship between production costs, sales revenue and output (sales volume), break-even analysis can be divided into: linear break-even analysis and non-linear break-even analysis.

Hello, Mr. Xiaohai of the Accounting School will answer for you.

Break-even production, assuming that production is equal to sales volume, then at the break-even point, there is no loss or profit, that is, the fixed cost of each product plus its own variable cost is equal to the selling price of the product. So the fixed cost of each product = 1800-1400 = 400. The total fixed cost is 2 million, so the output at the equilibrium point is 2 million divided by 400 and finally 5000

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Under the variable cost method,Profit from sales= Sales revenue - variable costs - fixed costs, when the unit price and cost level are constant, visible and operationalNet profitThe amount related is the sales volume.

In simple terms, operating income.

After deducting the cost and expenses, it is the total profit, and the total profit minus the income tax is the net profit. If there is no large amount of investment income or non-operating income and expenditure, etc., it can be calculated as follows.

Operating profit. It is the total operating income minus the total operating costs. The total operating income includes: profit from main business and profit from other business; The total operating costs include: the cost of the main business search and management expenses.

Financial expenses, sales expenses.

Accounting for the cost method:

1. When the investment company purchases shares, the long-term equity investment is debited.

For crediting bank deposits, etc., the investee company does not need to make accounting entries.

2. When the investment company receives dividends, it debits the bank deposit and credits the investment income.

3. When the invested enterprise pays a part of the dividends with the pre-purchase and sale distribution profits or surplus reserve funds of the invested enterprise, as well as the payment of liquidation dividends, these shall be repaid as part of the investment cost, debited bank deposits or investment income, and credited to long-term equity investment.

Under the variable cost method, sales profit = sales revenue - variable cost - fixed cost Shenyuan, when the unit price and Li San cost level are unchanged, it can be seen that the wandering state related to the net operating profit is the sales volume.

Answers]: b, c, e

According to the relationship between cost and output (or engineering quantity), Zhongchang can decompose the total cost of technical solutions into variable costs, fixed costs and semi-realizable sales (or semi-fixed) costs.

Variable costs are the costs that change proportionally to the increase or decrease in the output of the technical solution, such as raw materials, fuel, power costs, packaging costs, and sideshell piecework wages.

Semi-variable (or semi-fixed) cost refers to the cost between fixed cost and variable cost, which increases with the increase in the output of the technical solution, but changes disproportionately, such as certain consumable material costs, tooling costs and transportation costs related to the production batch, etc., and this part of the variable cost is generally a stepped curve with the change of output.

Answer]: C2021 2020 Edition Textbook P33

3) Semi-variable (or semi-fixed) cost In the analysis of the economic effect of the technical solution, in order to facilitate calculation and analysis, the semi-variable (or semi-fixed) cost of the product can be decomposed into fixed cost and variable cost according to the characteristics of the industry; Interest on long-term borrowings should be treated as fixed costs; Interest on working capital borrowings and short-term borrowing may be partly related to the production of the product, and the interest on them can be considered as a semi-variable (or semi-fixed) cost, which is generally considered as an agreed cost for the sake of simplifying the calculation. Semi-variable (or semi-fixed) costs are those that fall between fixed and variable costs and increase with the increase in the output of the technical solution, but do not change proportionally.

Answers] :d, e

2021 2020 Edition Textbook p33

Wages and benefits (except for piecework) and disturbances are fixed costs, and bright and wide e are variable costs. Raw materials, fuel, power, packaging and piece-rate wages are variable costs depreciation, repairs, intangibles, amortization of other assets, other expenses, and fixed wages are fixed costs.

Hello, It is not easy for banks to accurately grasp the level of interest costs and operating costs of loan funds, and for this, a well-designed management information system is required. First, the bank aggregates the marginal cost data of various debt funds and calculates the weighted average marginal cost of all new debt funds as the basis for loan pricing. Then, banks need to develop a systematic method for calculating and decomposing the operating costs of loans, and allocate the salaries and benefits, recurrent expenses, equipment costs and other expenses of different staff members to each loan business.

When calculating the cost of default, the bank can classify the loan into different risk levels, and then calculate the average default rate of each risk level based on historical data, so as to determine the default risk compensation rate of the loan. Target profit is the rate of return on loans that the bank expects to achieve in order to provide shareholders with the required rate of return on capital. The cost-plus pricing method takes into account the financing cost, operating cost and default cost of the customer, which is reasonable.

However, this pricing method has its drawbacks. It requires banks to be able to accurately identify the various costs associated with the lending business, which is quite difficult in practice. Moreover, it does not take into account the level of market profit and market competition and peer competition factors, and in fact, in the fierce competition, banks are not completely the first to make the best but often the first to accept.