Accounting break-even analysis uses
A) free cash flows over the entire life of a project.
B) sales, variable costs and fixed costs over the entire life of a project.
C) sales, variable costs and fixed costs for a single period.
D) free cash flows for a single period.

Question

Quizplus · Accepted Answer

Accounting break-even analysis involves calculating the sales volume needed to cover the total variable costs and total fixed costs incurred within a single period. Therefore, option C is the correct answer. Options A and D refer to free cash flows, which are not relevant to break-even analysis. Option B considers costs and revenues over the entire life of a project, which is beyond the scope of break-even analysis.

Accounting Break-Even Analysis Uses