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Business Accounting essay
← Liabilities and Stockholders EquityBenefits of Entering Accounting Field →

Business Accounting. Custom Business Accounting Essay Writing Service || Business Accounting Essay samples, help

Breakeven point can be defined as the point which income and expenses match. The expenses do not exceed the income. At the breakeven point, there are no profits (Aneirin, 277). For my income and my expenses to be at a breakeven point, then all the income should match all the budgeted expenses.

I will ensure that my expenses do not exceed my incomes. Measures to control my expenditure will be necessary. I would have to evaluate my income with respect to my living standards and the expected expenditure to be spent. To reduce my expense figure, I would have to categorize expenses according to their need and significance. Priority would be given to those items which are basic. However, some basic needs vary for instance food is a basic need and carefulchoices would have to be made in order to avoid indulging myself. In my list of priorities, I would buy those items whose dependence is unavoidable.

Rent is an unavoidable cost and a fixed cost (Drury 178). I should look for a place where renting costs are affordable. Some residences are extremely costly. It is necessary to look for a place where the prices match my income level.  Gas in my car takes a considerable percentage of my income. I would choose to take the bus to commute to save on gas money. Games and entertainment are mostly a luxury.

These are not immediate necessities, and I can do away with their budget allocation. This action would save me some money.  My cell expenses would have to be reduced. I will achieve this by making calls that are relevant only and lengthy communication reduced. I will prefer messages to my friends rather than calling. Incomes are best allocated with a properly planned budget. This will avoid overspending and misallocation of funds.

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