valuationbreak evenprofitcontributionforecastshiftqueuingbusiness analysis
accountbasbudgetBAS-I.Cshare valueshort salesinvestment
site mapform1

Browse All Question and Answer Items

Items selected where Item is 2058295

Questions & Answers

Q: I have a question with regard to inputs for break even analysis. How do variables like economic, political risks and other non-quantifiable variables affect break even calculations ? Are there taken into consideration ?

A: Not directly in standard break even analysis. Break even analysis is at a point in time, so if you are looking at current data ie revenue/expenses it already includes all internal and external environmental impacts. However if you build a business forecast using relative indicators ( https://bizpep.com/Input-Help.html#Relative-Indicators ) as applied in our forecast methodology areas such as Market Strength, Business Market Position, Level of Competition, etc are applied in developing the forecast and these do consider the future impact of these variables and apply them in a quatifiable manner. You can then calculate break even points for future years using the forecast values. This would allow future subjective variables to be considered in break even calculations, see https://bizpep.com/Breakeven-Help.html .

Question and Answer Item 2058295 - Browse All Question and Answer Items