The components of break-even analysis are
A) cost and profit.
B) volume and cost.
C) volume, cost and profit.
D) volume and profit.

Question

Quizplus · Accepted Answer

Break-even analysis involves determining the point at which revenues equal costs, thus no profit or loss is incurred. This analysis considers the volume of goods or services sold, the costs associated with production or service delivery, and the profit generated at various sales levels. Therefore, volume, cost, and profit are the essential components of break-even analysis.

The Components of Break-Even Analysis Are