Asked by T'Shumbie Tranell on Sep 26, 2024
Verified
Another term for break-even analysis is cost-volume-profit analysis.
Break-even Analysis
A financial calculation to determine the point at which revenue received equals the costs associated with receiving the revenue.
Cost-volume-profit Analysis
A financial analysis tool that helps in determining the effect of changes in costs and volume on a company's profit.
- Acquire knowledge on the concept and application of break-even analysis in the context of business processes.
Verified Answer
TK
Thien Kai Wen3 days ago
Final Answer :
True
Explanation :
Break-even analysis and cost-volume-profit analysis are two terms used interchangeably to refer to the same concept. It involves analyzing the relationship between costs, volume, and sales revenue to determine the point at which a business reaches a break-even point, where total costs and revenue are equal.
Learning Objectives
- Acquire knowledge on the concept and application of break-even analysis in the context of business processes.
Related questions
Break-Even Analysis Is an Excellent What-If Tool for Planners Who ...
Break-Even Analysis Is an Ideal Tool for Determining Employee Wages
In Break-Even Analysis, the Contribution Margin Is the Break-Even Point ...
A Major Problem with Break-Even Analysis Is That a Neat ...
The Western Division's Break-Even Sales Is Closest To