Question

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

Answer 1

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

What is break-even analysis?

• 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:

brainly.com/question/21137380

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