An analysis of the relationship between the sales volume and various measures of proﬁtability is called _____ analysis.
A)forecasting
B)scenario
C)sensitivity
D)simulation
E)break-even

Question

Quizplus · Accepted Answer

The analysis of the relationship between sales volume and various measures of profitability is known as break-even analysis. It helps in determining the point at which a company's revenue equals its total costs, indicating neither a profit nor a loss. This analysis is useful in businesses to determine the minimum sales volume required to cover costs and become profitable. Therefore, the best choice is E, break-even analysis. The other options, forecasting, scenario, sensitivity, and simulation analyses, are not specifically related to the relationship between sales volume and profitability.

An Analysis of the Relationship Between the Sales Volume and Various