A technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output is referred to as _________.
A)break-even analysis
B)marginal analysis
C)sensitivity analysis
D)market analysis
E)productivity analysis

Question

Quizplus · Accepted Answer

Break-even analysis is a technique that helps organizations in determining the level of sales that is required to cover costs. It aids in analyzing the relationship between total revenue and total cost to identify the point at which an organization’s revenues are equal to its total costs, i.e., the break-even point. Beyond the break-even point, an organization can generate profits. Hence, A is the correct answer. Marginal analysis, sensitivity analysis, market analysis, and productivity analysis are different techniques used in decision-making processes.

A Technique That Analyzes the Relationship Between Total Revenue and Total