Planned Break-Even Point by different businesses
Planned Break-Even Point by different businesses.
There are series of certain break-even points that every business has planned to reach in certain time frame. The first breakeven point is the cash break-even point that can be followed by the accounting break-even point while the financial breakeven point is usually planned to come at last . These three break even points are applied to all investment projects and sales in the same pattern. The cash breakeven point excludes the depreciation when it is achieved but the accounting break-even point includes the depreciation. The financial breakeven point also addresses the TMV (time value of money).