1, the financial break-even point refers to the sales volume or sales volume when the net present value is zero. ?

2. Accounting breakeven point refers to the sales volume or sales volume when the accounting profit is zero without considering the time value of money.

3. The cash break-even point refers to the sales volume or sales volume when the net cash inflow equals the net cash outflow at a certain point, and refers to the sales level when the net present value of the project is zero.

Second, the difference

1, the corresponding results of the calculated data are different.

(1) The sales calculated by the financial break-even point makes the net present value of revenue cash flow = the net present value of cost cash flow.

(2) The sales calculated by accounting breakeven point makes revenue = cost.

(3) The sales amount calculated by the cash break-even point makes the net cash outflow = net cash inflow.

2, consider different angles

(1) The financial breakeven point is the breakeven point at a specific time calculated from the actual financial profit.

(2) The accounting break-even point refers to the calculation of the profit and loss at a specific time from the perspective of accounting profit, regardless of the time value of money.

(3) The cash break-even point is the break-even point calculated from the perspective of cash flow, at which there is no net inflow or outflow of cash flow at a certain moment.

3. The premise of actual analysis and application is different.

(1) financial breakeven point The intersection of the present value of net cash flow and initial investment during the investment period of the project is the financial breakeven point. Only sales are greater than. The premise of financial break-even point is that the unit price is greater than the unit variable cost.

(2) Accounting breakeven point

The premise of enterprise accounting breakeven point is that the sales revenue and total cost intersect, that is, the unit price is greater than the unit variable cost. The premise of enterprise accounting breakeven point is the intersection of sales revenue and total cost, that is, the unit price must be greater than the unit variable cost.

Extended data:

1, analysis of financial breakeven point of single product enterprise

Suppose an enterprise produces a product with a unit price of 9,000 pieces, a unit variable cost of 7,000 yuan/piece and a fixed cost of 40,000 yuan, and calculate the financial break-even point sales of the enterprise.

Breakeven point sales =40000/(9000-7000)=20 (pieces)

This sales volume shows that the annual sales volume of the enterprise cannot be less than 20 pieces, otherwise the enterprise will lose money and lose money.

2, multi-product enterprise break-even point analysis

For multi-product enterprises, the break-even point is generally calculated by sales.

Breakeven point sales = 40,000/[(9000-7000)/9000] =180,000 yuan.

This sales figure shows that the annual sales of this enterprise can't be less than 180000 yuan, otherwise it will be unbalanced and lose money.

3. Assume that the normal sales volume of this enterprise is 25 pieces:

Breakeven point operating rate =20/25* 100%=80%

This ratio shows that the operating rate of an enterprise must reach more than 80% of the normal operation to make a profit, otherwise it will lose money. At the same time, this ratio can also be understood as the higher the ratio of normal sales (according to historical business records) exceeding the break-even point, the lower the possibility of losses under the normal and continuous operation of the enterprise.

References:

Baidu encyclopedia-breakeven point