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Break-even analysis
An examination of the income statement that identifies the break-even point for business.
Break-even point
The net income would be zero because the business has add exactly enough units to cover expenses.
Break-even units
The number of units of sale a business needs to sell to arrive at the break-even point.
Burn Rate
The rate at which a company spends cash to cover overhead costs without generating a positive cash flow.
Cash Flow
The money received minus what is spent over a specified period of time.
Cash flow Statement
A financial document that records inflows and outflows of cash when the actually occur>
Cyclical
A cash flow that varies according to the time of year.
Depreciation
an accounting method used to allocate the cost of a tangible or physical asset over its useful life.
Depreciation expenses
the amount that a company's assets are depreciated for a single period
Disposal value
The remaining value an asset possesses.
Fixed Expense
The costs of something that doesn't change.
Salvage value
The estimated resale value of an asset at the end of its useful life.
Straight line method of depreciation
An accounting process that spreads the cost of a fixed asset over the period an organization expects to benefit from its use.