Break-even analysis can be defined as:
A)analysis of the amount by which one input variable falls before a project ceases to be profitable.
B)analysis of the amounts by which one or more input variables may fall before a project ceases to be profitable.
C)analysis of the effect of changing all of the input variables whose values are uncertain to observe the effects on the results.
D)none of the given options.

Question

Quizplus · Accepted Answer

Break-even analysis is a financial tool that helps businesses determine the point at which their revenue covers their fixed and variable costs, which is known as the break-even point. This analysis involves examining the relationship between costs, sales volume, and profits to determine the minimum amount of sales needed for a project or business to be profitable. Thus, option B is the correct definition of break-even analysis as it describes the analysis of the amounts by which one or more input variables may fall before a project ceases to be profitable.

Break-Even Analysis Can Be Defined As