Management Accounting: Break-Even Analysis for Accurate Planning

This course overviews the fundamental cost-volume-profit analysis theories and specialised techniques. This knowledge will enable you to understand the interaction between fixed costs, production volume and profitability. In addition, you will become acquainted with break-even analysis ratios that allow scenario analysis with a focus on minimum volumes, standard selling price or maximum fixed costs. Learning this will help you generate a required return on investment based on the interaction of selling price, variable costs, fixed costs and output volume over a fixed period.

This course develops technical insight and skills in cost-volume-profit analysis. Knowing this analysis enables calculations such as the margin of safety and grants strategic insight into operations configuration to achieve a required return. Successful course participants will be able to analyse the cost structure of an operation, project or proposed venture.

Learners will understand how to establish minimum levels of activity or maximum levels of cost to reach the desired outcome based on the interaction between selling volumes and variable and fixed costs. Developing these skills enables sophisticated planning when combined with other techniques and theories, such as price elasticity of demand and risk and growth theories. These, in turn, relate to the cost of capital, which represents inputs for a break-even analysis. So enrol today and start your journey toward gaining a competitive edge.