Q308
Breakeven analysis is a
A.
Short term analysis
AnswerB.
Long term analysis
C.
Average of short and long term analysis
D.
Any one of these
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 (the "break-even point").