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Mechanical Engineering · Q273

Industrial Engineering And Production Management

Engineering and GATE · Mechanical Engineering · question 273

Q273

Break-even analysis can be used for

A.
Short run analysis
Answer
B.
Long run analysis
C.
Average of above two run analysis
D.
There is no such criterion

Answer: Option A

Solution

Answer: Option A
Solution:
Break-even analysis is a technique widely used by production management and management accountants.
Total variable and fixed costs are compared with sales revenue in order to determine the level of sales volume, sales value or production at which the business makes neither a profit nor a loss.