Discourse Upon Break-Even Analysis & Its Application--A Method Research On Financial Diagnoses

Break-even analysis is a kind of economic analysis technology, which based on variable cost; it synthetically analyses about enterprise's volume of production and marketing, income from sale, costs and profits. It helps the administrators know and hold the influencing and interaction that caused by product price, volume, cost, sales mix of the products, and then offers rational decision message for producing & sale etc., and carry on financial programming & plans better, to achieve the goal of improving enterprise's economic benefits.Break-even analysis possesses the characteristics of simple, convenient and effective, strong practicability, wide application scope. These will do good to our enterprises, especially small and medium-sized enterprises in making correct decision in the case of out of data, then obtaining significant development, so guaranteeing the economy of our country runs more healthily and better.This text uses the relevant theory knowledge of economics, statistics, mathematics, and accounting to discussion the break-even analysis. The full text divides into six chapters, chapter one introduces break-even analysis and relevant concepts, from chapter two to chapter four introduces the variable relationship in the break-even analysis model, how to establish the functions of cost and income, from chapter five to chapter six probe into break-even analysis in some application of the management activities.