treatment of interest of cash credit/OD

This query is : Resolved 

29 December 2010 When we are preparing project report then how we will treat interest on cash credit/OD for BEP calculation. Whether it should be treated as fixed cost, semi variable or variable cost?

02 January 2011 Financial charges are not treated as Overhead. For BEP claculation it will not be included. It is covered under margin of safety where profit and interest will be recovered.


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