At the highest levels of the organization, top management uses break-even analysis as a strategic planning tool.

Question

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Break-even analysis is a useful tool for planning and decision-making at various levels of the organization, including top management. Top management may use break-even analysis to assess the financial feasibility of new projects, determine the pricing strategy for products or services, or evaluate the impact of changes in fixed or variable costs on the overall profitability of the business. Therefore, statement is true that top management uses break-even analysis as a strategic planning tool.

At the Highest Levels of the Organization, Top Management Uses