Open AccessBreakeven Point – Instrument in the Company Performance Analysis
Author(s) -
Angela Deliu
Publication year - 2021
Publication title -
economica: revistă ştiinţifico-didactică
Language(s) - English
Resource type - Journals
ISSN - 1810-9136
DOI - 10.53486/econ.2021.115.007
Subject(s) - profitability index , profit (economics) , point (geometry) , economics , economic analysis , economic efficiency , boosting (machine learning) , rate of profit , industrial organization , microeconomics , finance , computer science , classical economics , mathematics , geometry , machine learning
In market economy, the purpose of any economic agent is to obtain profit from his economic activity. Profitability is considered a decisive tool for boosting the market economy mechanism, being a form of expressing the economic efficiency of the company to make a profit. Thus, the basic objective of the enterprise is profit and, in order to achieve the proposed goals, it is necessary to perform the analysis and periodic control of the activity, of the economic and financial situation, the state of performance within it. Depending on this, we consider optimal the use of the breakeven point in the performance analysis, an indicator that must be accepted as a financial instrument of analysis and control. In this article will be revealed the essence of the breakeven point, will be presented the importance, its forms of manifestation and calculation methods. A new interpretation in the calculation methods are proposed. Also, some productive situations will be presented depending on the breakeven point