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Breakeven Analysis by Jon Wentworth, Michael E. Cafferky

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Preface

Seldom does a manager go more than a month or two without employing the thinking patterns that are at the foundation of this book. In some rapidly changing organizations, breakeven calculations will be used as fodder for discussions, debates, and ultimately decisions on a daily or weekly basis.

Today’s managers are far more sophisticated than those of a generation ago, but the need for cost-volume-profit thinking and breakeven decision-making tools has not gone away. Advances in cost accounting; the use of activity-based costing; the use of many performance-improvement tools such as identifying and removing constraints, optimizing logistics, and inventory management all lead down two interrelated pathways: value improvement and cost reduction. ...

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