Break even point

This query is : Resolved

PANKAJ KUMAR SRIVASTAVA (Querist)
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16 November 2014 SIR,
FOR CALCULATION OF BREAK EVEN POINT OF A MANUFACTURING UNIT,INTEREST ON CASH CREDIT LOAN (WORKING CAPITAL LIMIT )AND DEPRECIATION ON FIXED ASSETS WHETHER WILL BE TREATED AS FIXED COST OR VARIABLE COST
SIR PLEASE GUIDE ME
WITH REGARDS

P V Ram

P V Ram (Expert)
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16 November 2014 Interest & Depreciation are treated as Fixed Costs as a general rule.

However, there are certain exceptions based on specific cases.

Further, as interest on CC keeps fluctuating depending on utilisation of limits, it is treated as non operating expenditure.

Thanks!