What is a price breakdown?

A breakdown is a downward move in a security's price, usually through an identified level of support, that portends further declines. A breakdown commonly occurs on heavy volume and the subsequent move lower tends to be quick in duration and severe in magnitude.

What is cost breakdown analysis?

In business economics cost breakdown analysis is a method of cost analysis, which itemizes the cost of a certain product or service into its various components, the so-called cost drivers. The cost breakdown analysis is a popular cost reduction strategy and a viable opportunity for businesses.

What is the difference between a breakout and a breakdown?

When the price hits the support level, everyone buys. When the price hits the support level a second time, this becomes an important level. When there is a third strike, and the price breaks through the support level line, we call it a breakdown. Simply put, breakout is upside and breakdown is downside. First, let's understand breakout better.

What if the price of a widget is higher than the breakdown?

If the price of the widget is significantly higher than the breakdown, you might be charging too much. If the price is lower than the breakdown, the company is taking a loss. When you perform a cost breakdown, you can do a simple breakdown that includes only the materials and labor needed to make your product.