Define Break Even Point, Break Even Analysis, Fixed cost and Variable cost

Break Even Point: Break Even Point (BEP) is a situation when you do not make a profit and you do not lose money either.

Break Even Analysis: Break Even Analysis (BEA) is a useful tool to study the relation between fixed cost, variable cost and revenue.

Fixed cost: It is a direct cost for production.

Variable cost: It is the cost that can change anytime.