Disadvantages of break even analysis includes:
* These are the assumptions mentioned above such as Sales=Stock or Total Revenue and Total Cost functions are linear.
* The model is static, it cannot account for changes in environment.
i dont know ask Amaan Abdi
Cost-volume-profit analysis (CVP), or break-even analysis,
there no difference between break even profit analysis and cost volume profit analysis
Yes. Because break even analysis determines the sales level needed to break even in units or dollars (both are numbers) so it is quantitative.
Limitation of break even is that it says that all costs remain same while it is not possible in actual world even then it is quite useful for analysis.
there is no advantage or diadvantages of break even
Disadvantages of break even analysis includes: * These are the assumptions mentioned above such as Sales=Stock or Total Revenue and Total Cost functions are linear. * The model is static, it cannot account for changes in environment.
i dont know ask Amaan Abdi
Cost-volume-profit analysis (CVP), or break-even analysis,
there no difference between break even profit analysis and cost volume profit analysis
The break- even analysis identifies the break-even point, which is the level of sales and expenses, including loan principal payments, at which a business has no profit and no loss.
Yes. Because break even analysis determines the sales level needed to break even in units or dollars (both are numbers) so it is quantitative.
Limitation of break even is that it says that all costs remain same while it is not possible in actual world even then it is quite useful for analysis.
The production cost is the cost to produce the product. The break even analysis is the amount you would have to sell the product for to simple break even on your cost-not to make a profit or lose money.
A break even analysis could support and resolve a monetary negotiation because it meets in the middle so no person losses anything.
Ignores economies of scale
Breakeven point is the point where firm has no profit no loss while breakeven analysis is the process of finding out the breakeven point.