break even point
1.) In business enterprises, the point at which revenues from sales exactly equal total incurred cost, i.e., Revenues = Variable Costs + Fixed Costs. 2.) In decision making such as make versus buy, lease versus buy, etc., it is the point of indifference, meaning that level of activity in which either method results in exactly the same cost. These types of break-even decisions often involve making assumptions about levels of activity such as number of units needed.
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