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What role does depreciation play in break-even analysis based on accounting flows?
Wiki User
∙ 14y ago
based on accounting flows, depreciation is regarded as fixed cost; based on cash flows, depreciation is not included in fixed cost.
so, break-even point by accounting flows is larger than cash break-even point.
in the long term, depreciation should be counted. so, break-even by accounting flows is longer term in nature.
Wiki User
∙ 14y ago
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