A critical financial concept, the break-even point represents the point at which total revenues equal total costs, resulting in neither profit nor loss. It is widely used in finance, real estate, and securities to determine financial health.
The process of determining the costs of the operations, processes, cost centres, and cost units within an organization.
A cost object is any item for which a separate measurement of costs is desired, including products, services, customers, or specific operations.
Financial Capital Maintenance is an accounting concept that stipulates a company must generate enough revenue to cover both operational costs and maintain its equity capital intact over a set period.
Life-cycle costing is a comprehensive approach to determining the total costs of a fixed asset, accounting for not just acquisition costs but also operational and maintenance expenses over its lifetime.
