Asked by Beatrice Sarah Jacob on Jun 28, 2024

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Break-even analysis can be very useful because it helps eliminate the uncertainty associated with the estimates of the various parameters used to calculate utility.

Break-even Analysis

A financial calculation to determine the point at which revenue received equals the costs associated with receiving the revenue, used in both project planning and business management.

Utility

In economics, a measure of satisfaction or benefit derived from consuming goods and services.

  • Acquire knowledge on the theory and implementation of break-even analysis in training courses.
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Vanesia FrenchJul 04, 2024
Final Answer :
True
Explanation :
Break-even analysis is a useful tool because it helps determine the point at which the cost of producing a product or providing a service is equal to the revenue generated from it. This can inform decisions about pricing, production levels, and resource allocation. By identifying the break-even point, businesses can eliminate some of the uncertainty involved in estimating costs and revenues, making it easier to make informed decisions about how to allocate resources and optimize profits.