Asked by Beatrice Sarah Jacob on Jun 28, 2024
Verified
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.
Verified Answer
VF
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.
Learning Objectives
- Acquire knowledge on the theory and implementation of break-even analysis in training courses.