Break Even Analysis

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9781606490167: Break Even Analysis
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This book explains the vocabulary of cost-volume-profit (breakeven) analysis (CVP), explores the breadth of applications of CVP, and illustrates the use of CVP concepts in a broad range of management and marketing scenarios. The book examines the proper identification of a 'unit', the various formulations of breakeven, profit planning using the breakeven formulas, and the application of CVP in sensitivity analysis. The book is organized into six units: introduction to the basic concepts and simple methods; contribution margin methods; multiple product line methods; mixed-cost methods; methods to deal with uncertainty, and; special topics. The chapters are arranged in a progression from less difficult towards more difficult. Even so, each chapter stands alone so that the reader can read a chapter out of order and still gain value. Each chapter will offer several important ingredients for a practical 'how to' approach: the type of data needed, the formula, how to calculate and interpret the math, a specific example followed by a brief review of the assumptions and limitations of that method.

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About the Author:

Michael Cafferky is an associate professor of business and management at Southern Adventist University's School of Business and Management. In an addition to a doctoral degree in business management from Anderson University Falls' School of Business, he also holds master's degrees in public health and religion. Professor Cafferky is a fellow in the American College of Healthcare Executives and is a member of the Academy of Management. Jon Wentworth is on the faculty of the School of Business and Management at Southern Adventist University. He has received Southern's Award for Commitment to Student Success. He was previously the chair of the accounting department at Klabat University in Indonesia. He received an MBA from the University of Tennessee and a Master of Taxation from Georgia State University. He holds a Tennessee Certified Public Accountant license.

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