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Break even point

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(Querist)
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
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P V Ram

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P V Ram (Expert)
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.

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