Key term
CCEA AS-Level Business 3210
Enterprise and Entrepreneurship
The Central Purpose of Business Activity
Forms of Business Ownership
Stakeholder Groups
Markets and Market Forces
Quality Management
Topic overviewWhat is quality?Total quality management, quality assurance and quality control definedThe advantages and disadvantages of TQMThe advantages and disadvantages of quality assurance and quality controlISO 9000 certification and the quality policyQuality control and quality assurance reviewedTQM, control and assurance comparedThe approaches to quality, and the case for and against TQMQuality control and quality assurance weighedISO 9000 certification, and how quality is measuredQuality as a dimension of competitiveness
Productivity and Investment
Organisational Design
Topic overviewHierarchy, span of control, chain of command and delegationCentralised, decentralised, tall, flat and matrix structuresCentralisation versus decentralisation, delayering, and the effects of designCentralisation and decentralisation weighedTall and flat structures weighedOutsourcingCentralisation, structure and outsourcing
Investing in People
Topic overviewSuccession planning, skills audits and the factors behind people investmentThe benefits and drawbacks of investing in peopleMethods of recruitment and selectionTraining and appraisal methodsOnline recruitment and selectionOnline training and appraisalInduction training: content, benefits and drawbacksOn-the-job training: methods, advantages and drawbacksOff-the-job training: methods, advantages and drawbacksContinuing professional developmentChoosing a training methodInternal and external methods of recruitmentInternal versus external recruitment weighedThe stages of selection, and the methods usedPsychometric testing: what it measures and what it missesPsychometric testingThe purpose of appraisal, and its benefits and drawbacksTechnology in the appraisal processOnline recruitment and selection technologyOnline training and appraisal technologyThe benefits and drawbacks of online HR processes
Motivation
Topic overviewTaylor's scientific management and Maslow's hierarchyHerzberg's two-factor theory, and the limits of each theoryTaylor and Maslow reviewedHerzberg's hygiene factors and motivators in detailMonetary and non-monetary methods of motivationLeadership styles, and choosing a method of motivationThe monetary methods of paymentThe monetary methods weighed, and calculating commissionJob design, empowerment, team working and flexible workingRecognition and development, and how non-monetary methods link to theory
Principles of Management and Leadership
Market Size, Share and Growth
The Degree of Competition in a Market
Market Research
The Marketing Mix
Elasticity of Demand
The Product Life Cycle
Market Planning and Strategy
E-Business and E-Commerce
Sources of Finance
Break-Even Analysis
Cash Flow
Cash Flow Forecasts
Budgeting
Break-Even Analysis
- 3 subtopics
- 9 things to know
- Unit AS 2
What Break-Even Analysis covers
Break-even analysis is examined in Unit AS 2, Growing the Business. It covers the break-even chart, contribution and the margin of safety, how cost and price changes move break-even, and target profit and the uses and limitations of break-even analysis.
Where it is assessed
Unit AS 2
Growing the Business, written examination, 20% of A level.
Check the CCEA specification ↗The 3 subtopics
Each one has its own page. CCEA AS Business students sit this topic in the first year.
- The break-even chart, contribution and the margin of safetyBreak-even point, contribution per unit and formula for calculating the margin of safety in units.Open →
- How cost and price changes move break-even, and target profitFormula for total contribution and formula for calculating profit using contribution.Open →
- The uses and limitations of break-even analysisWhat break-even analysis is good for, and the assumptions that undermine it: that everything made is sold, that costs and price stay put, and that the firm sells one product.Open →
What you need to know
Answer each one before you reveal it.
Your recallNot started
Key term
What does a change in selling price do to the revenue line and the break-even point, and what is total contribution?
Key term
What do rises and falls in fixed costs, and in variable cost per unit, do to the total cost line and the break-even point?
Key term
What does the x-axis represent on a break-even chart?
Evaluation
Why is the assumption that all output is sold a limitation of break-even analysis?
Evaluation
Why is the assumption that fixed costs remain constant a limitation of break-even analysis?
Key term
How are fixed costs shown on a break-even chart?
Key term
What happens to the total cost line and break-even point if fixed costs increase?
Evaluation
Why is the assumption of a constant selling price a limitation of break-even analysis?
Take Break-Even Analysis further
The same content, four other ways.
Commonly confused
Pairs that lose marks when they are blurred together.
Break-even point vs Margin of safety
Break-even point: the output at which revenue exactly equals total costs. Margin of safety: how far output can fall before losses begin.
Fixed costs vs Variable costs
Fixed costs: costs that do not change with the level of output. Variable costs: costs that rise and fall with the level of output.
Questions from this topic
Each one with the model answer underneath.
- 1
What does the x-axis represent on a break-even chart?
Model answer
Output or units sold.
- 2
How are fixed costs shown on a break-even chart?
Model answer
As a horizontal line, because fixed costs remain constant regardless of output level.
- 3
Where does the total costs line start on a break-even chart, and how does it behave?
Model answer
It starts at the level of fixed costs and rises with output as variable costs are added.
- 4
What does the break-even point represent on a break-even chart?
Model answer
The point where the total revenue line intersects the total costs line.
- 5
Define the break-even point.
Model answer
The level of output at which total revenue equals total costs, resulting in neither profit nor loss.
- 6
State the formula for calculating the break-even point in units.
Model answer
Break-even point (units) = Fixed Costs ÷ Contribution per unit.
What is inside Levo
Six ways to work the same material.
Break-Even Analysis revision questions
- Is Break-Even Analysis examined at AS in CCEA Business?
- Yes. It sits in Unit AS 2, which you take in the first year, so it is on the AS paper as well as counting towards the full A level.
- What does Break-Even Analysis cover in CCEA AS-Level Business?
- 3 subtopics: the break-even chart, contribution and the margin of safety, how cost and price changes move break-even, and target profit and the uses and limitations of break-even analysis. Each one has its own page with questions and model answers.
- How is Break-Even Analysis organised?
- By the CCEA 3210 specification, subtopic by subtopic, so it matches the order you are taught it in.
Every question in Break-Even Analysis, on a schedule.
Attempt a question from memory, write the correct version, then attempt it again. Levo records the jump between your first attempt and your last, and brings each question back on the day you are due to forget it.
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