Break-even-Analyse - Versionsgeschichte

Wikimeister am 2. September 2017 um 14:04 Uhr

2017-09-02T14:04:48Z

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	== Idea of break-even-analyses ==		== Idea of break-even-analyses ==

	A '''break-even-point''' (or break-even-volume) is a point at which the positive effects of a decision (typically sales revenues) cover the negative effects (typically costs). This critical point is interesting if both the positive and the negative effects depend in different ~~ways~~ on a common factor (e. g. production volume or activity) whose value is unknown. In this case it is not possible to calculate the profit of the decision. Instead, the break-even-point answers the question above which value of the common factor the decision will lead to higher positive than negative effects, or (to put it simple) above which value we will make profit.		A '''break-even-point''' (or break-even-volume) is a point at which the positive effects of a decision (typically sales revenues) cover the negative effects (typically costs). This critical point is interesting if both the positive and the negative effects depend to a different extent on a common factor (e. g. production volume or activity) whose value is unknown. In this case it is not possible to calculate the profit of the decision. Instead, the break-even-point answers the question above which value of the common factor the decision will lead to higher positive than negative effects, or (to put it simple) above which value we will make profit.
	The relations between costs, sales revenues, profits and the unknown or uncertain common factor are the objects of break-even-analyses or '''cost-volume-profit-(CVP)-analyses.''' <br>		The relations between costs, sales revenues, profits and the unknown or uncertain common factor are the objects of break-even-analyses or '''cost-volume-profit-(CVP)-analyses.''' <br>
	Given the broad variety of decisions with positive and negative effects in business and daily life, and the uncertainty we often face with respect to important factors, break-even-analyses have a long tradition in [[controlling]] and management. Apart from earlier anecdotic evidence, we find first formal approaches in the 19th century. Schweitzer/Troßmann (1986, 1998) provide an excellent overview and detailed descriptions of numerous specific variants and extensions of break-even-analyses for very different situations. In the following, we present the basic model and an extension to the [[Multi-product break-even-analysis\|multi-product case]].<br>		Given the broad variety of decisions with positive and negative effects in business and daily life, and the uncertainty we often face with respect to important factors, break-even-analyses have a long tradition in [[controlling]] and management. Apart from earlier anecdotic evidence, we find first formal approaches in the 19th century. Schweitzer/Troßmann (1986, 1998) provide an excellent overview and detailed descriptions of numerous specific variants and extensions of break-even-analyses for very different situations. In the following, we present the basic model and an extension to the [[Multi-product break-even-analysis\|multi-product case]].<br>

Wikimeister am 24. Januar 2013 um 17:17 Uhr

2013-01-24T17:17:28Z

← Nächstältere Version		Version vom 24. Januar 2013, 19:17 Uhr
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	''by Clemens Werkmeister''		''by Clemens Werkmeister''
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Wikimeister am 26. Januar 2012 um 20:31 Uhr

2012-01-26T20:31:17Z

Wikimeister: /* Benefits of break-even-analyses */

2012-01-14T17:06:03Z

Benefits of break-even-analyses

← Nächstältere Version		Version vom 14. Januar 2012, 19:06 Uhr
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	---<br/>		---<br/>
			see too: [[Multi-product break-even-analysis]]<br>
	References:<br/>		References:<br/>
	Schweitzer, M.; E. Troßmann; G. E. Lawson: Break-even-Analyses. John Wiley & Sons 1992.<br/>		Schweitzer, M.; E. Troßmann; G. E. Lawson: Break-even-Analyses. John Wiley & Sons 1992.<br/>
	Schweitzer, M.; E. Troßmann: Break-even-Analysen. 2. Aufl., Berlin 1998 (1. Aufl. 1986).<br/>		Schweitzer, M.; E. Troßmann: Break-even-Analysen. 2. Aufl., Berlin 1998 (1. Aufl. 1986).<br/>
	Tucker, Spencer A.: The Break-Even System: A Tool for Profit Planning. Englewood Cliffs (N J.) 1963.		Tucker, Spencer A.: The Break-Even System: A Tool for Profit Planning. Englewood Cliffs (N J.) 1963.

Wikimeister am 12. Januar 2012 um 15:29 Uhr

2012-01-12T15:29:48Z

← Nächstältere Version		Version vom 12. Januar 2012, 17:29 Uhr
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	This simple condition results in the break-even-volume: <br>		This simple condition results in the break-even-volume: <br>
	: x* = K<sup>f</sup>/(p – k<sup>v</sup>). <br>		: x* = K<sup>f</sup>/(p – k<sup>v</sup>). <br>


	=== Standard break-even-analysis using contribution margins ===		=== Standard break-even-analysis using contribution margins ===

Wikimeister am 12. Januar 2012 um 15:18 Uhr

2012-01-12T15:18:55Z

← Nächstältere Version		Version vom 12. Januar 2012, 17:18 Uhr
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	A '''break-even-point''' (or break-even-volume) is a point at which the positive effects of a decision (typically sales revenues) cover the negative effects (typically costs). This critical point is interesting if both the positive and the negative effects depend in different ways on a common factor (e. g. production volume or activity) whose value is unknown. In this case it is not possible to calculate the profit of the decision. Instead, the break-even-point answers the question above which value of the common factor the decision will lead to higher positive than negative effects, or (to put it simple) above which value we will make profit.		A '''break-even-point''' (or break-even-volume) is a point at which the positive effects of a decision (typically sales revenues) cover the negative effects (typically costs). This critical point is interesting if both the positive and the negative effects depend in different ways on a common factor (e. g. production volume or activity) whose value is unknown. In this case it is not possible to calculate the profit of the decision. Instead, the break-even-point answers the question above which value of the common factor the decision will lead to higher positive than negative effects, or (to put it simple) above which value we will make profit.
	The relations between costs, sales revenues, profits and the unknown or uncertain common factor are the objects of break-even-analyses or '''cost-volume-profit-(CVP)-analyses.''' <br>		The relations between costs, sales revenues, profits and the unknown or uncertain common factor are the objects of break-even-analyses or '''cost-volume-profit-(CVP)-analyses.''' <br>
	Given the broad variety of decisions with positive and negative effects in business and daily life, and the uncertainty we often face with respect to important factors, break-even-analyses have a long tradition. Apart from earlier anecdotic evidence, we find first formal approaches in the 19th century. Schweitzer/Troßmann (1986, 1998) provide an excellent overview and detailed descriptions of numerous specific variants and extensions of break-even-analyses for very different situations. In the following, we present the basic model and an extension to the [[Multi-product break-even-analysis\|multi-product case]].<br>		Given the broad variety of decisions with positive and negative effects in business and daily life, and the uncertainty we often face with respect to important factors, break-even-analyses have a long tradition in [[controlling]] and management. Apart from earlier anecdotic evidence, we find first formal approaches in the 19th century. Schweitzer/Troßmann (1986, 1998) provide an excellent overview and detailed descriptions of numerous specific variants and extensions of break-even-analyses for very different situations. In the following, we present the basic model and an extension to the [[Multi-product break-even-analysis\|multi-product case]].<br>


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	: x* = K<sup>f</sup>/(p – k<sup>v</sup>). <br>		: x* = K<sup>f</sup>/(p – k<sup>v</sup>). <br>

	~~=== Graphical break-even-analysis ===~~
	~~An important appeal of break-even-analyses comes from its intuitive graphical presentation. The following graph shows the standard model of break-even-analysis.<br>~~
	~~[[Datei:break-even.png]]<br>~~

	=== Standard break-even-analysis using contribution margins ===		=== Standard break-even-analysis using contribution margins ===
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	The break-even point corresponds to the condition D(x) = K<sup>f</sup>:<br>		The break-even point corresponds to the condition D(x) = K<sup>f</sup>:<br>
	: x* = K<sup>f</sup>/d.<br>		: x* = K<sup>f</sup>/d.<br>

			=== Graphical break-even-analysis ===
			An important appeal of break-even-analyses comes from its intuitive graphical presentation. The following graph shows the standard model of break-even-analysis.<br>
			[[Datei:Break-even-standard.PNG\|thumb\|left]]<br>

			<br style="clear:left;"/>


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	== Benefits of break-even-analyses ==		== Benefits of break-even-analyses ==

	Starting from the quite intuitive standard break-even-model, numerous variants and extensions have been suggested. Sometimes a more sophisticated approach might be seen as a “methodological overkill” and a simpler approach may be sufficient. This trade-off depends largely on the situation. However, the broad acceptance of break-even-analyses in everyday business situations goes beyond the calculation of break-even-points. It is due to the fact that even simple approaches require an analysis of the critical factors that influence sales, cost and profits, and of the way they do it – exactly the information every manager would like to have.		Starting from the quite intuitive standard break-even-model, numerous variants and extensions have been suggested. Sometimes a more sophisticated approach might be seen as a “methodological overkill” and a simpler approach may be sufficient. This trade-off depends largely on the situation and, properly used, break-even-analyses are among of the most important tools of [[controlling]] and [[managerial accounting]].<br>
			However, the broad acceptance of break-even-analyses in everyday business situations goes beyond the calculation of break-even-points. It is due to the fact that even simple approaches require an analysis of the critical factors that influence sales, cost and profits, and of the way they do it – exactly the information every manager would like to have.

Wikimeister am 12. Januar 2012 um 14:58 Uhr

2012-01-12T14:58:08Z

← Nächstältere Version		Version vom 12. Januar 2012, 16:58 Uhr
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	=== Graphical break-even-analysis ===		=== Graphical break-even-analysis ===
	An important appeal of break-even-analyses comes from its intuitive graphical presentation. The following graph shows the standard model of break-even-analysis.<br>		An important appeal of break-even-analyses comes from its intuitive graphical presentation. The following graph shows the standard model of break-even-analysis.<br>
	[[Datei:break-even~~-standard~~.png]]<br>		[[Datei:break-even.png]]<br>

	=== Standard break-even-analysis using contribution margins ===		=== Standard break-even-analysis using contribution margins ===

Wikimeister am 12. Januar 2012 um 10:41 Uhr

2012-01-12T10:41:24Z

@@ Zeile 3: / Zeile 3: @@
-sorry, this page is still under construction
+== Idea of break-even-analyses ==
@@ Zeile 14: / Zeile 87: @@
 References:<br/>
 Schweitzer, M.; E. Troßmann; G. E. Lawson: Break-even-Analyses. John Wiley & Sons 1992.<br/>
-Schweitzer, M.; E. Troßmann: Break-even-Analysen. 2. Aufl., Berlin 1998.<br/>
+Schweitzer, M.; E. Troßmann: Break-even-Analysen. 2. Aufl., Berlin 1998 (1. Aufl. 1986).<br/>

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2012-01-10T16:35:58Z

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[[break-even point]]

sorry, this page is still under construction

---<br/>
References:<br/>
Schweitzer, M.; E. Troßmann; G. E. Lawson: Break-even-Analyses. John Wiley & Sons 1992.<br/>
Schweitzer, M.; E. Troßmann: Break-even-Analysen. 2. Aufl., Berlin 1998.<br/>

← Nächstältere Version		Version vom 26. Januar 2012, 22:31 Uhr
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	This simple condition results in the break-even-volume: <br>		This simple condition results in the break-even-volume: <br>
	: x* = K<sup>f</sup>/(p – k<sup>v</sup>). <br>		: x* = K<sup>f</sup>/(p – k<sup>v</sup>). <br>


	=== Standard break-even-analysis using contribution margins ===		=== Standard break-even-analysis using contribution margins ===
Zeile 28:		Zeile 29:
	The break-even point corresponds to the condition D(x) = K<sup>f</sup>:<br>		The break-even point corresponds to the condition D(x) = K<sup>f</sup>:<br>
	: x* = K<sup>f</sup>/d.<br>		: x* = K<sup>f</sup>/d.<br>


	=== Graphical break-even-analysis ===		=== Graphical break-even-analysis ===
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	* The model assumes a '''simple production structure''' with one product. Convergent production is possible if the production coefficients are fixed. Divergent or [[Multi-product break-even-analysis\|multi-product cases]] require more challenging approaches.		* The model assumes a '''simple production structure''' with one product. Convergent production is possible if the production coefficients are fixed. Divergent or [[Multi-product break-even-analysis\|multi-product cases]] require more challenging approaches.
	* Assumptions concerning costs and sales revenues:		* Assumptions concerning costs and sales revenues:
	** Cost and sales revenues depend only on the same single factor, the volume or activity which can be measured by a continuous variable. Other factors are assumed to be constant, irrelevant of covered by the volume, too.		** Cost and sales revenues depend only on the same single factor, the volume, number of units or activity which can be measured by a continuous variable. Other factors are assumed to be constant, irrelevant of covered by the volume, too.
	** Cost and sales revenues are '''linear''' but different. Non-linear or step-wise linear cost and sales revenue functions resulting, among others, from intensity effects, discrete capacity increases or volume discounts are more difficult to handle.		** Cost and sales revenues are '''linear''' but different. Non-linear or step-wise linear cost and sales revenue functions resulting, among others, from intensity effects, discrete capacity increases or volume discounts are more difficult to handle.
	** It is possible to separate costs into a fixed and a variable part. Without this '''cost separation,''' the break-even-volume would be zero (if p ≥ k) or there wouldn’t be any break-even point at all (if p < k).		** It is possible to separate costs into a fixed and a variable part. Without this '''cost separation,''' the break-even-volume would be zero (if p ≥ k) or there wouldn’t be any break-even point at all (if p < k).
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	These assumptions limit the use of break-even-analyses to a very narrow range of cases. For other cases, Schweitzer/Troßmann (1998) describe variants and extensions of the standard break-even model. <br>		These assumptions limit the use of break-even-analyses to a very narrow range of cases. For other cases, Schweitzer/Troßmann (1998) describe variants and extensions of the standard break-even model. <br>
	* '''Variants of break-even-analysis''' include (see Schweitzer/Troßmann 1998, pp. 55 ff.):		* '''Variants of break-even-analysis''' include (see Schweitzer/Troßmann 1998, pp. 55 ff.):
	** Separate break-even-points for different levels of financial goals. It is straightforward to calculate increasing break-even-points corresponding to a zero EBITDA, a zero EBIT, zero earnings or ~~any amount of minimum~~ earnings.		** Separate break-even-points for different levels of financial goals. It is straightforward to calculate increasing break-even-points corresponding to a zero EBITDA, a zero EBIT, zero earnings or other '''target earnings.'''
	** Cost-volume-profit-analyses (in the narrow sense of the term) look at the reaction of the break-even-point on variations of unit prices, unit variable costs, or the fixed costs. A typical application is configuration of a product through '''value engineering.'''		** Cost-volume-profit-analyses (in the narrow sense of the term) look at the reaction of the break-even-point on variations of unit prices, unit variable costs, or the fixed costs. A typical application is the configuration of a product through '''value engineering.'''
	** Differences between production and sales volumes can be modeled through the introduction of inventories.		** Differences between production and sales volumes can be modeled through the introduction of inventories.
	** Instead of comparing sales and costs of one project or technique, costs for different projects or techniques to manufacture the same product can be analyzed. Typical applications include decisions about rationalization, the choice among alternative plants, or technological innovations. The result is a recommendation whether to shift from one technique to the next, and a break-even-point for this shift.<br>		** Instead of comparing sales and costs of one project or technique, costs for different projects or techniques to manufacture the same product can be analyzed. Typical applications include decisions about rationalization, the choice among alternative plants, or technological innovations. The result is a recommendation whether to shift from one technique to the next, and a break-even-point for this '''technology shift.''' <br>

	A common characteristic of these variants is that they calculate the break-even-points in the same ways as in the standard model. In general, finding the relevant information or simplifying it to fit to the assumptions of standard break-even analyses is more difficult than its use.<br>		A common characteristic of these variants is that they calculate the break-even-points in the same ways as in the standard model. In general, finding the relevant information or simplifying it to fit to the assumptions of standard break-even analyses is more difficult than its use.<br>
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	* Extensions of break-even-analyses<br>		* Extensions of break-even-analyses<br>
	: Extensions of break-even-analyses override the limits or the simplifications of the standard model. They require different computational approaches to determine the break-even-points. The most important extensions deal with (see Schweitzer/Troßmann 1998, pp. 122 ff.):		: Extensions of break-even-analyses override the limits or the simplifications of the standard model. They require different computational approaches to determine the break-even-points. The most important extensions deal with (see Schweitzer/Troßmann 1998, pp. 122 ff.):
	:* non-linear production structures, especially for [[Multi-product break-even-analysis\|multi-product cases]]		:* non-linear production structures, especially for divergent or regrouping [[Multi-product break-even-analysis\|multi-product cases]]
	:* non-linear cost and sales functions		:* non-linear cost and sales functions
	:* more than one factor		:* more than one factor, especially the [[Multi-product break-even-analysis\|multi-product cases]] or the combination of output units with process conditions (temperature, ...)
	:* dynamic production processes, especially multi-period processes and inventories		:* dynamic production processes, especially multi-period processes and inventories
	:* multiple goals.<br>		:* multiple goals.<br>
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	== Dealing with risk in break-even-analyses ==		== Dealing with risk in break-even-analyses ==

	Break-even-analysis itself is a technique designed to deal with one form of '''uncertainty,''' the uncertain outcome of the production or sales volume. The other input data of the break-even model (unit prices, unit variable costs, fixed costs, …) are deterministic. However, if additional information is available, further insights are possible. The additional information can consist in:		Break-even-analysis itself is a technique designed to deal with one form of '''uncertainty:''' the uncertain outcome of the production or sales volume. The other input data of the break-even model (unit prices, unit variable costs, fixed costs, …) are deterministic. However, if additional information is available, further insights are possible. The additional information can consist in:
	* the '''expected value''' x<sup>e</sup> of sales volume: this information allows to calculate the following '''margin of safety''' S (cp. Tucker 1963):<br>		* the '''expected value''' x<sup>e</sup> of sales volume: this information allows to calculate the following '''margin of safety''' S (cp. Tucker 1963):<br>
	: S = (x<sup>e</sup> – x*)/x<sup>e</sup> <br>		: S = (x<sup>e</sup> – x*)/x<sup>e</sup> <br>