pls explain me how to calculate multiple BEP in case of step fixed cost
3 Replies
CA Rajat Jain
(CA)
(1677 Points)
Replied 08 September 2011
step up cost / semi fixed cost remains constant upto a particular level of activity but after this level of activity the cost will changeand it will again become constant upto the next level
CA Rajat Jain
(CA)
(1677 Points)
Replied 08 September 2011
in this situation we will calculate bep for every level of activity of fixed costs and the bep which for in the same block of activity for whose f.cost is calculated will be taken as valid bep and others will be invalid bep
CA Rajat Jain
(CA)
(1677 Points)
Replied 08 September 2011
and one more thing in this situation there can be more than one bep and it is also possible that there will be no bep
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