Cash break-even analysis eliminates the non-cash charges from fixed costs in order to obtain the amount of quantity sold is necessary in order for cash inflow to equal the cash outflow.

Question

Quizplus · Accepted Answer

Cash break-even analysis only looks at the cash flow aspect of the business, and therefore eliminates non-cash charges such as depreciation from fixed costs.

Cash Break-Even Analysis Eliminates the Non-Cash Charges from Fixed Costs