Break Even Analysis

摘要

As stated in the AAHA primer text, Successful Financial Management for the Veterinary Practice, there is an entire body of accounting and financial theory which deals with cost analysis and accounting of those costs. This same reference explains Cost Behavior Patterns, Break-Even Analysis, and Cost-Volume-Profit Analysis in Chapter 3 and some useful veterinary financial ratios in Chapter 5, so I will not reiterate those facts or factors. It is also assumed that the annual cash budget is being effectively planned, as discussed in Chapter 4 of the above mentioned text. It is my belief that a practice must clearly identify fixed and variable costs before it attempts fiscal analysis of cost data by any of the above mentioned methods.