Break-even price (also known as break-even price) refers to the price that is at least equal to all possible expenses from production to sales under the conservatively estimated sales volume.
Extended data
Theoretically, no matter how an enterprise obtains inventory, all expenses related to obtaining inventory should be included in the historical cost or actual cost of inventory. The Accounting Standards for Business Enterprises-Inventory stipulates that inventory costs include procurement costs, processing costs and other costs. The purchase cost generally includes the purchase price.
Import duties and other taxes and fees, transportation fees, loading and unloading fees, insurance fees and other expenses directly attributable to inventory purchase. The commodity procurement cost of commodity circulation enterprises includes purchase price, import tariff and other taxes and fees. The processing cost of inventory includes the manufacturing cost allocated by direct labor according to a certain method.
Other costs refer to other expenses besides purchasing costs and processing costs, such as design fees for designing products for specific customers, expenses for other auxiliary materials in the production process, depreciation fees for equipment in the production process, utilities and other production-related expenses.
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