Financial Directors and Business Owners Should Be Clear About Their Break-Even Point
Several important that every business owner and director of finance should know is your monthly balance. This is the point where the business generate enough profits from the sales to just cover fixed overhead costs. increased sales and business will benefit, lower sales and no losses.
fixed costs, as its name implies, is a cost that does not tend to vary according to a turnover. These include administrative staff salaries, cost of ownership, insurance, office supplies, equipment rental, motor expenses, depreciation, bank, etc. When calculating the monthly cost of overhead costs, always remember to allocate a portion financial costs, such as the accountants’ fees “billed to you once a year.
To determine the breakeven profits from the sale, you only need two pieces of financial information:
1) Total fixed overheads
2) Gross profit percentage (GP% or gross margin)
Gross profit percentage is calculated from the average profit that the business of making sales, respectively. Therefore, if you sell a product or service for £ 250 and its variable costs 175 pounds, the gross profit was £ 75 and that 30%% GP. If you make ten sales, gross profit, would be 10 x £ 75 = £ 750% MP, but there will be 30%.
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Support For Public Financial Management
The general budget support is the mode of aid to promote the advancement and progress in budget management and the ability of countries are unstable economy. sustainable economic growth and poverty reduction are also targets general budget support by donors to achieve a strategic planning and coordination within recipient countries and among donors.
The main objective of general assistance budget is to highlight the host country’s national strategy for development. It also goes against the progress of the harmonization of aid through better dialogue between recipient countries and donors. In the past, presented various development issues, the excess of Standard and Poor’s outside the budget of small scale, lack of ownership in developing countries, to develop its own general budget support through the consideration of this problem .
Moreover, the work patterns of general budget support to enhance the support already common in countries and areas. This allows the recipient country to manage a variety of issues related to development and growth. Therefore, budget support and strengthen its financial management capacity. This makes the overall development of society.
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