accounting for sport management
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Dr.Pongsak SWATDIKIAT
การแลกเปลยนผลประโยชนซงกนและ กนระหวางบคคลตงแต2กลมขนไป
WHAT IS BUSINESS?
What are the risks(possible future
sacrifices?)
What are the rewards (possible future
benefits?)
Marketing
HumanResources
Production and OperationsB
USI
NES
S F
UN
CTI
ON
Sเนนสรางความพงพอใจ
แกลกคา โดยใช 4’P
เนนทพนกงาน : เชอมนในความสามารถ และใหโอกาสในการสรางสรรคสงใหมๆ
เนนการดาเนนงาน : วางแผนจดองคการ สงการ และควบคมการปฏบตงาน
BU
SIN
ESS
FU
NC
TIO
NS F i n a n c e
A c c o u n t i n g and Information Systems
เนนทเงน: ดแลการจดหาเงนและใชเงน เลอกลงทนเพอใหเกดผลตอบแทนทคมคา
ทสด
เนนผใชขอมล: จดเตรยมขอมลทเหมาะสมกบการ
ใชงานของฝายตางๆ ในองคกร รวมถงผใช
ภายนอกองคกร
Forms of Business Organization• Sole Proprietorship
– Single individual– Unlimited Liability
• Partnership Firms– A few individuals– Unlimited Liability
• Limited company– Numerous individuals, often strangers– Large business– Limited liability
ประเภทของธรกจ
แบงตามลกษณะการจดตง
Sole proprietorship - กจการเจาของคนเดยว ม
ฐานะเปนบคคลธรรมดา ลงทนดวยสนทรพยสวนตวหรอกยม
จากผอน
- รบผลประโยชนไปเพยงคนเดยว มความคลองตวในการ บรหารงาน
- มขอจากดเรองเงนทนจงทาใหขยายธรกจไดยาก ความรบผดชอบ ตอผเสยหายอยางเตมเปยม และการตดสนใจทอาจขาดการ
ไตรตรอง
แบงตามลกษณะการจดตง
Partnership - กจการหางหนสวน มเจาของตงแต 2 คนขนไป รวมกนลงทนและบรหารกจการ มฐานะเปนบคคล
ธรรมดา แตถานากจการไปจดทะเบยนจะมฐานะเปนนตบคคล แบงไดเปน
- หางหนสวนสามญ
+ หางหนสวนสามญ (เปนบคคลธรรมดา)+ หางหนสวนสามญจดทะเบยน (เปนนตบคคล)
- หางหนสวนจากด (เปนนตบคคลมการจากดความรบผดชอบ)* มเงนทนและมคนชวยในการบรหารงานมากขน* เงนทนอาจยงไมมากเพยงพอ การตดสนใจทาไดชาลง ขยายธรกจ
ไดยาก เลกกจการไดงาย
ประเภทของธรกจ
แบงตามลกษณะการจดตง
Corporation - บรษทจากด คนตงแต 7 คนขนไป แบงทนเปนหนหนละเทาๆ กน จากดความรบผดชอบใน
หนสนของผถอหน มฐานะเปนนตบคคล - ขยายธรกจไดงาย จากดความรบผดชอบในหนสน มการ
แบงผลประโยชนทชดเจน โอนเปลยนความเปนเจาของไดงาย
- มขอบงคบและขอปฏบตทางกฎหมายมาก
UNDERSTANDING BUSINESS ORGANIZATIONS
• Business provide goods and services in order to earn profit.
• Business that provide goods are of three kinds:
Merchandising (Trading) Manufacturing Service
ประเภทของธรกจ
แบงตามลกษณะการดาเนนงาน
Service - กจการทใหบรการ จะนาเสนอสนคาทไมอาจจบตอง ได เชน ความบนเทง ความร การพกผอน สขภาพ เปนตน
Merchandising - กจการซอมาขายไป เปนผทซอสนคามา เพอขายตอใหกบลกคาซงอาจเปนผคาสงหรอผคาปลก
Manufacturing - กจการทผลตสนคา โดยจะซอวตถดบ จางแรงงานและจดหาอปกรณตางๆ และแปลงวตถดบนนๆ ใหเปน
สนคาเพอขายตอใหกบผคาสงหรอผคาปลกตอไป
Service Firm
Merchandising Firm
Manufacturing Firm
Investment by ownersInvestment by owners Loans from creditorsLoans from creditors
Monetary resources(Capital)
Monetary resources(Capital)
Continue business Activities
Continue business Activities
Pay Tax
Pay Tax
Pay Loan
Pay Loan
Pay return to owners
Pay return to owners
Monetary resources from sale of goods and services
Monetary resources from sale of goods and services
Produce good and service
Produce good and service
Buy land, buildings, and
equipment
Buy land, buildings, and
equipment
Pay other operating
exp.
Pay other operating
exp.
Pay employee Pay employee Purchase materials and
supplies
Purchase materials and
supplies
Business earningsBusiness earnings
วงจรธรกจ (Business Cycle)
What is Accounting?
What is Accounting?• Accounting is often called the language of
Business.• Accounting, as an information system, is the process
of identifying, measuring, and communicating the economic information
of an organization to its users
who need the information for decision making.
Definition of Accounting• The American Institute of Certified Public
Accountants (AICPA) defines accounting as “the art of recording, classifying and summarizing in a significant manner and in terms of money transactions and events which are, in part at least, of a financial character, and interpreting the results thereof”.
ความหมาย
“การบญช เปนระบบประมวลขอมลทางการเงน การจดบนทก รายการคาตาง ๆ ทเกยวกบการรบจายเงน สงของ และสทธทมมลคาเปน
เงนไวในสมดบญชอยางสมาเสมอ เปนระเบยบถกตองตามหลกการและ สามารถแสดงผลการดาเนนงานและฐานะการเงนของกจการในระยะเวลา หนงได"
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Accounting is the information system that...Accounting is the information system that...
measures business activities,measures business activities,
processes data into reports, andprocesses data into reports, and
communicates results to decision makers.communicates results to decision makers.
Accounting – The Language of Business
OBJECTIVES OF ACCOUNTING
To maintain accounting records. เพอจดบนทกรายการตาง ๆ ทเกดขนเรยงตามลาดบกอนหลง และจาแนกประเภทของรายการคาไวอยางสมบรณ และถกตองตามหลกการบญชและตามกฎหมายวาดวยการบญช
To calculate the results of operation เพอประเมนผลการดาเนนงาน
To ascertain the financial position เพอทราบสถานะทางการเงนขององคกร
To communicate the information to the users เพอแจงขอมลขาวสารแกผเกยวของ
USERS OF ACCOUNTING INFORMATION
Internal Users:Management group:
Board of DirectorsPartnersManagersOfficers
External Users:Investors (present and potential)LendersSuppliersPublic Group:Govt and Regulatory AuthoritiesEmployees and Trade UnionsCustomersRating AgenciesOthers:
Security AnalystsAcademiciansResearchers
ประโยชนของการบญช
1. ชวยใหเจาของกจการสามารถควบคมงานอยางใกลชด2. ชวยใหทราบผลการดาเนนงานของกจการ ในระยะเวลา
ใดเวลาหนง
3. ชวยใหทราบฐานะการเงนของกจการ ในระยะเวลาใด
เวลาหนง
ประโยชนของการบญช
4. ชวยในการบรหารงาน และใหขอมลอนเปนประโยชน
ในการวางแผนการดาเนนงาน
5. ชวยในการตรวจสอบหาขอผดพลาด6. ชวยในการกาหนดนโยบายและการตดสนใจตางๆ ของ
ธรกจ
7. ผลงทนซอหนจะอาศยขอมลทางการบญชตดสนใจใน การลงทน
Post to the ledger
บญชแยกประเภท
Source documents
Record transactions
Prepare a trial balance
งบทดลอง
Prepare financial statements and report
งบการเงน (งบกาไรขาดทน /
งบดล ฯลฯ )
Transaction Analyze
Overview of the Accounting Process
External Transactions occur between the
organization and an outside party.
Internal Transactions occur within the
organization.
Transactions and Events
Exchanges of economic consideration between two parties.
Sales Invoices
Bank Statement
Purchase Orders
Checks
Source Documents
Branches /Classification of Accounting
Financial Accounting
CostAccounting
ManagementAccounting
HumanResource
A/cing
ResponsibilityA/cing
InflationA/cing
Other EmergingBranches
Accounting
INPUT PROCESS OUTPUT
•Recording•Classifying •Summarizing•Analyzing•Interpreting
Communicating information to users *P&L A/cงบกาไรขาดทน
*B/S Balance sheet งบดล*CFS Cash flow statementงบประแสเงนสด ,etc)
Economic events measured in
financial terms
The Accounting Information System
Financial Statements
Profit and Loss A/c งบกาไรขาดทนStatement of financial performance
Balance sheet งบดลStatement of financial position
Statement of cash flows งบกระแสเงนสดStatement of cash receipts and cash payments
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The Financial StatementsThe financial statements are a picture
of the company in financial terms.
Each financial statement relates to a specificdate or covers a particular period.
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The Accounting Equation
Assets are the economic resourcesof a business that are expected toproduce a benefit in the future.
Liabilities are “outsider claims,”or economic obligations
payable to outsiders.Owners’ equity represents the“insider claims” of a business.
Assets ทรพยสน
What a business “owns”Probable future economic benefitsExamples
CashInvestmentsBuildingsPlant and MachineryPatents and Copyrights
สนทรพย (Assets)Assets ทรพยสน ความหมาย
บญญตศพทโดยสมาคมบญชและผสอบบญชรบ
อนญาตแหงประเทศไทยไดใหความหมายสนทรพยวาหมายถง สงมตวตนหรอหรอไมมตวตนอนมมลคาซงบคคลหรอกจการ
เปนเจาของ หรอมสทธครอบครอง โดยถกตองตามกฎหมาย
ประเภทของสนทรพย (Assets)แบงออกเปน 3 ประเภท ไดแก
1.
สนทรพยหมนเวยน (Current Assets)
2. สนทรพยถาวร เชน ทดน อาคาร และ อปกรณ (FIX Asset eg.Property Plant and Equipment)
3. สนทรพยอน (Other Assets Sundry Assets )
LandLand
EquipmentEquipmentBuildingsBuildings
CashCash
Prepaid Expenses Prepaid
Expenses
Office Supplies Office
Supplies
Store Supplies Store
Supplies
Prepaid Insurance Prepaid
Insurance Notes Receivable
Notes Receivable
Accounts Receivable Accounts
Receivable
ASSETSASSETS
Asset Accounts
Liabilities
What a business “owes”Probable future sacrifices of economic benefits เปนการลงทนเพอผลประโยชนในภายหนาExamples
Loans payable หน ทงในระยะสนและระยะยาวWarranty obligations ภาระผกพนตางๆ เชน การคาประกน Pensions payable เงนบานาญ เงนสงเคราะหทจะตองจายIncome tax payable ภาษคางจาย
หนสน ((Liability)Liability)
ความหมาย
หมายถง จานวนเงนทกจการเปนหนบคคลอนหรอ พนธะอนเกดจากรายการคา การกยมหรอเกดจากการอน ซงจะตอง
ชาระคนในภายหนาดวยสนทรพย หรอบรการ
Accrued Liabilities Accrued
LiabilitiesUnearned Revenues Unearned Revenues
Notes Payable Notes
PayableAccounts Payable
Accounts Payable
LIABILITIESLIABILITIES
LiabilityAccounts
ประเภทของหนสน (Liability)
1. หนสนหมนเวยน (Current Liabilities)
2. หนสนระยะยาว หรอหนสนอนๆ
(Long term or other Liabilities)
แบงเปน 2 ประเภท ดงน
Owner’s Equity• It is what’s left of the assets after liabilities
have been deducted (Residual interest of owners)– the same as net assets– the owner’s claim on the entity’s
assetsExamples
Share capital Share premiumRevenuesRetained profit
สวนของเจาของ (Owner’s Equity )
ความหมาย
สวนของเจาของ(Owner’s Equity) ตามคา
นยาม หมายถง สวยไดเสยคงเหลอในสนทรพยของกจการ
หลงจากหกหนสนออกแลว เปนสนทรพยสทธ (Net Assets) ของกจการ
EquitiesEquities
RevenuesRevenues
Owners’ Capital
Owners’ Capital Owners’
Withdrawals Owners’
Withdrawals
ExpensesExpenses
Equity Accounts
LiabilitiesLiabilities EquityEquityAssetsAssets = +
Owner’s Capital
Owner’s Capital
Owner’s Withdrawals
Dividend
Owner’s Withdrawals
Dividend
RevenuesRevenues ExpensesExpenses
Accounting Equation
+ +– –
Exh.3.3
สมการบญช (Accounting Equation)
สนทรพย = หนสน + สวนของเจาของ
Assets = Liability + Owner’s Equity
A = L + OE
EconomicResources
Claims toEconomicResources
The Accounting Equation
Assets = Liabilities + Owner’s Equity
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Information Reported on the Financial Statements
1. How well did thecompany perform(or operate) duringthe period?
Revenues– Direct Expenses
Gross income (Gross loss)
TradingAccount
Question AnswerFinancialStatement
1. How well did thecompany perform(or operate) duringthe period?
Gross Profit– Indirect Expenses
Net income (Net loss)
Profit and Loss
Account
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Information Reported on the Financial Statements
3. What is the company’sfinancial position at theend of the period?
Assets= Liabilities
+ Owners’ equity
Balancesheet
Question AnswerFinancialStatement
4. How much cash didthe company generateand spend duringthe period?
Operating cash flows±
Investing cash flows
±
Financing cash flows
Increase or decrease in cash
Statementof
cashflows
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Income Statement งบกาไรขาดทน
The income statement, reports the company’s revenues,
expenses, and net incomeor net loss for the period.
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Introduction to the Income Statement
The The income statementincome statement is a financialis a financialtool that provides information abouttool that provides information about
a companya company’’s past performances past performance..
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The Income Statement
RevenuesRevenues
–ExpensesExpenses
= Net incomeNet income(or Net loss)(or Net loss)
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Sales revenues– Cost of goods sold
Gross profit
Operatingincome
Selling andadministrative
expenses– =
Income Statement Format
Add: Other revenues and gainsLess: Other expenses and losses
Transactions that Affect Owner’s Equity
OWNER’S EQUITYINCREASES
OWNER’S EQUITYDECREASES
Owner Investmentsin the Business
Revenues Expenses
Owner Withdrawalsfrom the Business
Owner’s Equity
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Income Statement
Revenue - the proceeds that come from sales to customers
Cost of Goods Sold - an expense that reflects the cost of the product or good that generates revenue. .
Gross Margin - also called gross profit, this is revenue minus
COGS
Operating Expenses - any expense that doesn't fit under COGS
such as administration and marketing expenses.
Net Income before Interest and Tax - net income before taking interest
and income tax expenses into account.
Interest Expense - the payments made on the company's outstanding debt.
Income Tax Expense - the amount payable to government.
Net Income - the final profit after deducting all expenses from revenue.
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The Income Statement can be divided into:
• Trading Account
• Profit and Loss Account
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The Accounting Terms
Revenues are inflows or otherRevenues are inflows or otherenhancements of assets to an entity.enhancements of assets to an entity.
They result from delivering orThey result from delivering orproducing goods, rendering services,producing goods, rendering services,or other activities that constitute theor other activities that constitute theentityentity’’s major or central operations.s major or central operations.
They are amounts received or to be received from customers for sales of products or services.
salesperformance of services
rentinterest
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The Accounting Terms
Expenses are outflows orExpenses are outflows orother using up of assets.other using up of assets.
They result from delivering orThey result from delivering orproducing goods, rendering services,producing goods, rendering services,or other activities that constitute theor other activities that constitute theentityentity’’s major or central operations.s major or central operations.
They are amounts that have been paid or will be paid later for costs that have been incurred to earn revenue.
salaries and wagesutilities
supplies usedadvertising
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The Accounting Terms
– Gross profit (gross margin) - excess of sales revenue over the cost of inventory that was sold
– Operating expenses - a group of recurring expenses that pertain to a firm’s routine operations
– Operating income (operating profit) - gross profit less all operating expenses
– Other revenues and expenses - items not directly related to the main operations of a firm
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The Accounting Terms
• Net income - the remainder after all expenses (including income taxes) have been deducted from revenue– Often seen as the “bottom line”
• Net loss - the excess of expenses over revenues
Analyze the transaction and its source.Identify the impact of the transaction on account balances.
Also identify the financial statements that are impacted by the transaction.
Analyzing Transactions
Importance of managerial accounting information for decision making
Planning
Directing
Controlling
Improving
Decision making
Cost Concept
Cost : a payment of cash; or its equivalent; or the commitment to pay cash in the future for the purpose of generating revenues
Classification of costs
By behavior
By function
By period
Classification by behavior
1. Fixed costs
3. Semi variable costs
2. Variable costs
Does not change when the volume of activity changes.
Changes in proportion with the changes in the volume of activity.
A mixed of fixed and variable costs.
Relationship between fixed costs and activity
Costs
Activity (unit)
Total fixed cost
10 20 30
Relationship between variable costs and activity
Costs
Activity (unit)
Total variable cost
10 20 30
Relationship between mixed costs and activity
Cost
Activity (unit)
Total mixed costs
10 20 30
Classification by function
1. Manufacturing costs
2. Administration costs
3. Selling costs
Cost incurred in the process of transferring raw material to finished goods.
Cost incurred and related to administration activities.
Cost incurred and related to the selling and distributing activities.
Manufacturing Cost Concept
Manufacturing consists of activities and processes that convert raw materials into finished goods.
Manufacturing costs are usually classified as follows:
Direct materials
Direct labor
Manufacturing overhead
Manufacturing Cost : Direct Materials
Raw materials are the basic materials and parts that are to be used in the manufacturing process.
Raw materials that can be physically and directly associated with the finished product during the manufacturing process are called direct materials.
Manufacturing Cost : Indirect Materials
Some raw materials cannot be easily associated with the finished product. These are considered indirect materials.
Are accounted for as part of manufacturing overhead and :
1 do not physically become part of the finished product; or
2 cannot be traced because their physical association with the finished product is too small in terms of cost.
Manufacturing Cost : Direct Labor
Direct labor is the work of factory employees that can be physically and directly associated with converting raw materials into finished goods.
The wages of maintenance people, timekeepers, and supervisors are usually identified as indirect labor. Their efforts have no physical association with the finished product.
Like indirect materials, indirect labor is part of manufacturing overhead.
Manufacturing Cost : Overhead
Manufacturing overhead consists of costs that are indirectly associated with the manufacture of the finished product.
These costs may also be manufacturing costs that cannot be classified as direct materials or direct labor.
Manufacturing overhead includes1 indirect materials;2 indirect labor;3 depreciation on factory buildings and machines4 insurance, taxes, and maintenance on
factory facilities.
Product Cost vs. Period Cost
Product costs include each of the manufacturing cost elements (direct materials, direct labor, and manufacturing overhead); they are costs that are a necessary and integral part of producing the finished product.
These costs are not expensed to cost of goods sold under the matching principle until the finished goods inventory is sold.
Product Cost vs. Period Cost
Direct materials and direct labor are often referred to as prime costs due to their direct association with the manufacturing of the finished product.
Direct labor and manufacturing overhead are often referred to as conversion costs since they are incurred in converting raw materials into finished goods.
Product Cost vs. Period Cost
Period costs:
are identifiable with a specific time period,
relate to non-manufacturing non-inventoriable costs,
and
include selling and administrative expenses.
Product Cost vs. Period Cost
Direct Material
Direct Labor
Factory OH
Prime Cost
Conversion Cost
Selling Expenses
Admin Expenses
Product Cost
Period Cost
Manufacturing Costs
Non-manufacturing Costs
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The Breakeven Point (BEP)
The level of activity, in units or dollars, at which
REVENUES = COSTS
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Basic Assumption: Relevant Range
Company is operating within the relevantrange of activity specified in determining the revenue
and cost information used.
Total$
Activity Level
RelevantRange
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Basic Assumption: Revenue
Total revenue fluctuates in direct proportion to level of activity or volume. On a per unit basis, the selling
price remains constant.
Total$
Activity Level
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Basic Assumption: Variable Costs
Total variable costs fluctuate in direct proportion to level of activity or volume. On a per unit basis,
variable costs remain constant.
Total$
Activity Level
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Basic Assumption: Fixed Costs
Total fixed costs remain constant relative to activity level changes. Per-unit fixed costs decrease as
volume increases and increase as volume decreases.
Total$
Activity Level
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Basic Assumption: Mixed Costs
Mixed costs must be separated into variable and fixed elements.
Total$
Activity Level
80
Breakeven Point
Breakeven point is the point at which profits are zero because total revenues equal total costs, or
Total revenues = Total fixed costs + Total variable costs
TR=TFC+TVCPxQ=TFC+TVCPXQ=TFC+(QxVC)
81
Cost Behavior Example
Selling price per PIECE $40
Variable production cost PIECE $20Variable selling cost per PIECE 4Total variable cost per PIECE $24
Fixed production costs $100,000Fixed selling and administrative costs 20,000
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Continuing . . . Breakeven Point
In units 40 X Q =120,000+(Q X 16)40Q =120,000+24Q40Q-24Q=120,00016Q =120,000Q =7,500 PIECE
In dollars 7,500 x 40 = 300,000 USD
TR=TFC+TVCPxQ=TFC+TVCPXQ=TFC+(QxVC)
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Break Even Analysis
Costs/Revenue
Output/Sales
Initially a firm will incur fixed costs, these do not depend on output or sales.
FC
As output is generated, the firm will incur variable costs – these vary directly with the amount produced.
VC The total costs therefore (assuming accurate forecasts!) is the sum of FC+VC
TC Total revenue is determined by the price charged and the quantity sold – again this will be determined by expected forecast sales initially.
TR The lower the price, the less steep the total revenue curve.
TR
Q1
The break even point occurs where total revenue equals total costs – the firm, in this example, would have to sell Q1 to generate sufficient revenue to cover its costs.
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Break Even AnalysisCosts/Revenue
Output/Sales
FC
VCTCTR (p = £2)
Q1
If the firm chose to set price higher than £2 (say £3) the TR curve would be steeper – they would not have to sell as many units to break even
TR (p = £3)
Q2
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Break Even AnalysisCosts/Revenue
Output/Sales
FC
VCTC
TR (p = £2)
Q1
If the firm chose to set prices lower (say £1) it would need to sell more units before covering its costs.
TR (p = £1)
Q3
86
Break Even AnalysisCosts/Revenue
Output/Sales
FC
VC
TCTR (p = £2)
Q1
Loss
Profit
87
Break Even AnalysisCosts/Revenue
Output/Sales
FC
VC
TCTR (p = £2)
Q1 Q2
Assume current sales at Q2.
Margin of Safety
Margin of safety shows how far sales can fall before losses made. If Q1 = 1000 and Q2 = 1800, sales could fall by 800 units before a loss would be made.
TR (p = £3)
Q3
A higher price would lower the break even point and the margin of safety would widen.