Wat Is BEP?: Investing

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Wat is BEP?

BEP-Break Even Point. It indicates no Loss and no Profit The level of activity at which total revenues equal total costs. BEP means Break Even Point.This is the point when the firms Total cost= Total revenue. a point where contribution is equal to fixed cost Breakpoint is called as when the prodution reched to cost. then production is reched to cost only u can get the no profit and no loss . BEP sales tells that sales is reached to cost then only u can get the no loss and no profit. BEP is a point when company is at the position of no profit no loss.in LC-CURVE it is the highest point.Whenever a company comes in existance in the starting it is investing more and earning less slowly slowly it comes in the position when saturation state comes means its expences are equals to its earnings.this state is actually known as BEP. Break Even Point is the point where there is no Loss No Profit. The total revenues will be equal to total costs. Break Even Point is a point where there is no profit and no loss . It is very important for every company to take managerial decisions like how much quantity to be sold to gain desired profit, how many units to be sold to get the desired profit, to find margin of safety etc.,

What is marginal cost?


Marginal cost is nothing but Variable cost. It is a varaible cost of production Marginal Cost is the cost with is incurred to produce one more extra unit. Example to produce 100 units cost is Rs. 500/to produce the 101th unit the cost became Rs. 520/- (The cost to produce one more unit i.e, unit is Rs. 20/-) The Rs. 20/- is called Marginal Cost.

marinal cost is nothing but u produce additional unit in production. that additional unit cost is called marginalcost Marginal Cost is variable cost AS LONG AS your fixed assets can handle the output. If that additional unit forces you to acquire more assets to handle it, your marginal cost can be way out of line with your average variable cost.

"cost accounting has become an essential tool of management "- What is your opinion

"Cost Accounting" in simple meaning, costing of the product for the market. But in modern market (which is full of big competitors) launching any new product in the market, have to take necessary and minded steps which gives spread in the whole market and ofcourse also in the consumers eyes. In this modern age of cut-throat competetion cost accounting for the product is must to mininize cost of product and gettting maximum profit. If the producer does not maintain or minimize waste in the cost he will be failer.

What is chargeback?
A recharge of costs
A process in the industry where a wholesaler requests an amount that is the difference between the manufacturer's price to the wholesaler and the contract price to the resale customer. The actual chargeback occurs when the wholesaler sells the manufacturer's product at contract price that is below wholesaler acquisition cost (WAC). Especially evident in pharmaceutical industry

A process in the industry where a wholesaler requests an amount that is the difference between the manufacturer's price to the wholesaler and the contract price to the resale customer. The actual chargeback occurs when the wholesaler sells the manufacturer's ...

What are variable costs?

Variable costs are those that are directly proportionate with the quantity of production and or directly associated with the service. variable costs are dependeing upon production. u re increases production automatically variable cost is also increased.decrease in production means automatically variable cost decreased.

What is authorised share capital? What is paid up share capital? What is contingent liability?

The capital which is mentioned in the capital clause of the memorandum of assoiciation is called as authorised capital. For example if the capital requirement of the business in the long run is Rs. 10,00,000 and current requirement is only Rs. 50,000. The amount of Rs. 10,00,000 is called as authorised capital. To collect Rs. 50,000, if you issued shares, that Rs. 50,000 is called as issued capital. If the shareholders subcribed only for Rs. 40,000, this Rs. 40,000 is called as subcribed capital. If you call only Rs. 25,000 for your current requirement, then this 25,000 is called as called up capital . Say for example one share holder has not paid his share, you received only Rs. 24,000. This Rs. 24,000 is called as paid up capital. Dividends are paid only on paid up capital. The liability may or may not arrise in the future is called as contingent liability. If you discount a bill in the bank, the bill may honour or dishonour on the due date. in the mean time this is considered as contingent liability. it is shown as foot note to the balance sheet.

What are fixed costs?

The costs that are fixed irrespective of production are fixed costs. EX: Rent, Depreciation

What do you mean by LC ?


LC - Letter Of Credit means a guarrantee given by the bank during the course of International Business

Its a gurantee given by the bank onbehalf its client

what is the difference between cash flow statement and funds flow statement?

Statement showing changes in inflow & outflow of cash during the period is Cash Flow Statement. Statement showing the sorce & application of funds during the period is Fund Flow Statement.

What do you mean by Margin of Safety (MOS)?


Margin of safety is the difference between Actual Sales and Sales at Break Even Point. The Higher is the margin of safety, the better is for the organisation. MARGIN OF SAFETY: ACTUAL SALES - BREAK EVEN SALES. MARGIN OF SAFETY: PROFIT /P/V RATIO.

Margin of safety is the difference between Actual Sales and Sales at Break Even Point. The Higher is the margin of safety, the better is for the organisation.MARGIN OF SAFETY: ACTUAL SALES - BREAK EVEN SALES.MARGIN OF SAFETY: PROFIT /P/V RATIO. ...

What`s the difference between Marginal cost and Oppurtunity cost?


The derivative of total production costs with respect to the level of output is Marginal cost. The benefits you could have received by taking an alternative action is oppurtunity cost.

Explain about real account, personal accounts and nominal accounts

Real Account: The accounts relating to all assets and properties are called real accounts. Personal Account: The accounts relating to induviduals, firms, associations or companies are known as personal account. Nominal Account: The accounts relating to expenses, losses, incomes and gains are known as nominal accounts.

what is the difference between cost accounting and management account


The process of tracking, recording and analyzing costs associated with the products or activities of an organization is Cost Accounting.

The process of identifing, measuring, analysing, preparing , interpreting and communicating the information is Management Accounting.

How to control inflation??


Inflation is a hydra header monster. It cannot be controlled by taking a single measure. However, if monetary and fiscal measures are wisely coordinated, it can greatly help in controlling the continuous process of rising prices. The main anti inflationary measures both short and long terms are:Containing money supply;The monetary supply should be kept within reasonable limits. Reducing budgetary deficit;The budgetary deficit should be kept low level. The deficit should be met by disciplined policy of demand management.Emphasis on commodity producing sectors:The government should give special attention to the production of cottons, wheat, vegetables, edible oil etc. it will have soothing effects on inflating. Commodity balance:The government should have a strict watch on the prices of essential commodities in the country. It should take immediate steps in changing the import and export duties and maintain the availability of goods is reasonable prices.Curtailment of administrative expenses:The curtailment of administrative expenses can have a softening effect on inflation.Closing of the utility stores;The net work of over 700 utility stores has not helped in stabilizing the prices in the country. These are mostly located in big cities and posh localities. The low income groups are least benefiting from them. The earlier they are closed, the better it is.

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