Break-even Flashcards
1
Q
Break even
A
Total revenue = total cost
2
Q
Uses of break-even analysis
A
. Helps in decision-making: setting prices; introducing new products; assessing changes in cost
. Bank loans and investors
3
Q
Limitations of break-even analysis
A
. Output and stocks
. Changing conditions
. Accuracy of data
. Non- linear relationships
. Multi-product businesses
