From – “Cover Your Nut” – 1.1 Accounting and Business Questions With Answers

     12 – What Does “Cover Your Nut” mean?

The “Cover Your Nut” principle means that your sales and revenue must cover all of your costs and expenses over a given time frame.  Another way of putting it is your “break-even point”, the sales and revenue level where you cover all costs and expenses for a specific period (month, quarter, or year).