Revenue budget

How much of the sale income needs to be generated in order to reach break-even with expected costs? How many additional revenues are needed to achieve a desired profit?

Answers to these questions are key in making accurate business decisions and planning a profit and loss account on the market. The analysis of the relationship 'Costvolume profit' establishes the relationship between expenses, the activity volume, sales and profit on different levels of activity, which are used to determine what is needed to reach break-even of all the expenses for a certain level of activity and the profit and loss area. The aforementioned analysis is the foundation for creating revenue budget.

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