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Costs, Break-even analyse - Coggle Diagram

- - - - Not always every product is sold
    - - Semi-variable costs
- - - - The chart itself shows different parts of information
        
        The fixed costs: dont vary with the level of output and it have to be paid always. Also, draw as a horizontal line meaning it is constant.
        
        The total costs: it is the amount of the fixed and variable costs added. Moreover, starts in the graph with the fixed costs line.
        
        The sales revenue: is the multiplying of the selling price by the output level. In the chart starts at 0 because if there are no sales, no revenue.
        
        The variable costs: starts from 0 in the chart, refering that if there is no production, there is no variable costs
- - - - Remain fixed no matter what the level of output
    - - Vary as output chanches
      - Include both a fixed and a variable costs element
        
        Fpr example: the electricity standing charge plus cost per unit used
    - - The additional costs of producing one more unit of output
- - - - Helps them take apppropiate decisions
    - - If set aside, overhead costs may be overlooked and forgotten
  - - - They need to be aware and consider every costing type and its classifications
      - They must have more than one method of costing
        
        Otherwise, they could end up having misleading information and take poor decisions