Break‑even analysis requires knowing the relationship
A) between sales and earnings
B) between sales and total costs
C) between total revenues and fixed costs
D) between sales and assets

Question

Break‑even analysis requires knowing the relationship​
A) ​between sales and earnings
B) ​between sales and total costs
C) ​between total revenues and fixed costs
D) ​between sales and assets

Quizplus · Accepted Answer

Break-even analysis requires knowing the relationship between sales and total costs. This analysis helps businesses determine at what point their total revenue equals their total costs, allowing them to identify the minimum amount of sales needed to cover costs and make a profit. Therefore, it is important to understand the relationship between sales and total costs to accurately perform break-even analysis.

Break‑even Analysis Requires Knowing the Relationship​

Break‑even Analysis Requires Knowing the Relationship