Break-even analysis can help a manager compare location alternatives on the basis of quantitative factors that can be expressed in terms of total cost.

Question

Quizplus · Accepted Answer

Break-even analysis is a tool used by managers to compare location alternatives on the basis of total cost. It helps them determine the point at which revenue generated by a location is enough to cover all its costs, including fixed and variable costs. By analyzing the cost and revenue data of different location options, a manager can make an informed decision on the most cost-effective location for their business. Therefore, the statement is true.

Break-Even Analysis Can Help a Manager Compare Location Alternatives on the Basis