Evaluate the following statement: Break-even analysis tells us how many units must be sold in order for a project to break even on a cash flow or an accounting basis.

Question

Quizplus · Accepted Answer

Break-even analysis is a financial tool that helps to determine the minimum level of sales required to cover all the costs of a project, including both fixed and variable costs. It also indicates how many units must be sold to achieve the break-even point. Therefore, the given statement is true, as break-even analysis provides information on the number of units required to break even on both a cash flow and accounting basis.

Evaluate the Following Statement: Break-Even Analysis Tells Us How Many