The basic form of cost-volume-profit analysis is often called break-even analysis. true/ false

1 answer:

5 0

The given statement exists true. That the basic form of cost-volume-profit analysis is often called break-even analysis.

<h3>What is break-even analysis?</h3>

By comparing the costs of a new business, service, or product to the unit sell price, a break-even analysis calculates the point at which you will become profitable.
Break-even analysis focuses on determining what number of sales will prevent losses given the fixed and variable expenses.
In other words, it indicates the point at which you will have sold enough units to pay for all of your costs.

The formula is:

Fixed Costs / Contribution Margin = Break-even point

Cost-Volume-Profit Analysis (CVP analysis), also commonly referred to as Break-Even Analysis.

To learn more about break- even analysis, refer to:

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