Which option identifies the point at which benefits equal costs?
A)Net present value
B)Break-even analysis
C)Time value of money
D)Present value

Question

Quizplus · Accepted Answer

Break-even analysis is a tool used to determine the point at which the costs of a project or decision equal the benefits. It takes into account fixed and variable costs, as well as revenue, to determine the number of units or time period needed before the project breaks even. Therefore, it is the best choice for identifying the point at which benefits equal costs.

Which Option Identifies the Point at Which Benefits Equal Costs