Accounting - Accounting Costs Profit Contribution and break...

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2011-12-14 1 Accounting Costs, Profit, Contribution and break E A l i Even Analysis Content • Costs Fixed / variable Direct / indirect • Revenue • Profit C t ib ti • Contribution Break Even Analysis
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2011-12-14 2 Costs Fixed costs – these do not alter with output V i bl t lt di tl ith th b i Variable costs – alter directly with the business’s level of output Total costs – are fixed and variable costs added together Semi variable – have a fixed and a variable element Fixed Costs Examples – rent, management salaries, rates Graphically fixed costs will always be illustrated by a horizontal line As output changes fixed costs stay the same
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