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Types of Break-even charts

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 asked

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

**.Contribution Breakeven Chart:** This chart shows contribution earned by, the firm at different levels of activity. **Cash Breakeven Chart:** In this chart variable costs are assumed to be payable in cash. Besides this the fixed expenses are divided into two groups, viz. (a) those expenses which involve cash outflow e.g. rent, insurance, salaries, etc. and (b) those which do not involve cash outflow. e.g. depreciation. **Control Breakeven Chart**: Both budgeted and actual cost data are depicted in this chart. This chart is useful in comparing the actual performance of the firm with the budgeted performance for exercising control. **Analytical break even chart:** This chart shows the break-up of variable expenses into important elements of cost. Viz. direct materials, direct labour, variable overheads, etc. Also the appropriations of profit such as ordinary dividends, preference dividend , reserves, etc. are depicted in this chart. **Product wise break even chart**: Separate break-even charts for different products can also be prepared to compare the profitability of the products or their contribution. **Profit graph:** Profit graph is a special type of break-even chart, which shows the profits or loss at different levels of output.

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Data?1494421730 answered

Dear Friend > Different types of Break-even charts 1. Contribution Breakeven Chart: This chart shows contribution earned by, the firm at different levels of activity. 2. Cash Breakeven Chart: In this chart variable costs are assumed to be payable in cash. Besides this the fixed expenses are divided into two groups, viz. (a) those expenses which involve cash outflow e.g. rent, insurance, salaries, etc. and (b) those which do not involve cash outflow. e.g. depreciation. 3. Control Breakeven Chart: Both budgeted and actual cost data are depicted in this chart. This chart is useful in comparing the actual performance of the firm with the budgeted performance for exercising control. 4. Analytical break even chart: This chart shows the break-up of variable expenses into important elements of cost. Viz. direct materials, direct labour, variable overheads, etc. Also the appropriations of profit such as ordinary dividends, preference dividend , reserves, etc. are depicted in this chart. 5. Product wise break even chart: Separate break-even charts for different products can also be prepared to compare the profitability of the products or their contribution. 6. Profit graph: Profit graph is a special type of break-even chart, which shows the profits or loss at different levels of output. Thanks

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