_____ includes both cost and revenue data for an item to identify the point where revenue equals cost, and the expected profit or loss at different production volumes.

Question

Quizplus · Accepted Answer

Break-even analysis is the only option that fits the description provided. It calculates the production volume at which revenue will equal cost, allowing a company to determine the expected profit or loss at different levels of production. Make-buy analysis is a comparison between the cost of producing an item in-house versus outsourcing it, while TCO (Total Cost of Ownership) is a method of evaluating the long-term cost-effectiveness of different options. Market-share pricing is a strategy for setting prices based on capturing a specific percentage of the market. None of these options consider both cost and revenue data in the way that break-even analysis does.

_____ Includes Both Cost and Revenue Data for an Item