 Methods of Depreciation and Their Effect on Break-Even Point of SalesMarin Galabov Economic Studies journal, 2017, issue 3, 66-90 Abstract: This Article includes introduction, two parts and conclusion. It presents a study on the effect of methods of fixed assets depreciation and intangibles amortization on break-even point of sales (volume of identical products sold by a company where the financial result is zero) – a company reports sales profit upon sale of product volume above the even-break point and sales loss upon sale of product volume below the break-even point. In this Article, "depreciation" will be used instead of both terms "depreciation" and "amortization" for convenience purposes. The presented research work is based on the Bulgarian legal framework regulating fixed assets depreciation and intangibles amortization and current knowledge of break-even point.We consider the discussed issue materially important as break-even point of sales is directly related to the profit of a company while that profit concerns the interests of company owners, i.e. they may allocate it or any portion of it as dividends. A company may retain such profit or any portion of it to optimize its economic growth.The issues related to break-even point of sales are the subject of a number of research works and we think that the present study will contribute to that topic. JEL-codes: L20 (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bas:econst:y:2017:i:3:p:66-90 Access Statistics for this article More articles in Economic Studies journal from Bulgarian Academy of Sciences - Economic Research Institute Contact information at EDIRC. |
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