Examlex
Operons
Break-Even
The point at which total costs and total revenue are equal, meaning the business is neither making a profit nor incurring a loss.
Variable Expense
Costs that change in proportion to the activity or volume of a business, such as raw materials and sales commissions.
Fixed Expense
Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.
Margin of Safety
This is a financial metric that measures the difference between actual sales and the break-even point, indicating how much sales can decline before a business incurs a loss.
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