Another name for breakeven analysis is ____.
A) cost-volume-profit analysis
B) graphic analysis
C) EBIT-EPS analysis
D) degree of operating leverage

Question

Quizplus · Accepted Answer

Breakeven analysis is also known as cost-volume-profit analysis, as it helps to determine the level of sales needed to cover all costs and achieve a zero profit or breakeven point. It analyzes the relationship between sales volume, cost, and profit to understand the impact on profitability. The other options, such as graphic analysis, EBIT-EPS analysis, and degree of operating leverage, are different types of financial analysis tools used to measure different aspects of a company's performance.

Another Name for Breakeven Analysis Is ____