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Accounting Break-even
The point at which total revenues exactly equal total expenses, and there is no profit or loss, from an accounting perspective.
Financial Break-even
The point at which total revenue equals total costs and expenses, leaving the company with no net profit or loss.
Variable Cost
Costs that move in correspondence with the quantity of products made or services sold.
Fixed Costs
Expenses that do not vary with production volume or business activity level, such as rent, salaries, and insurance premiums.
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