Breakeven analysis is normally performed for a planning period of:
A)five years
B)one year or less
C)ten years
D)one month

Question

Quizplus · Accepted Answer

Breakeven analysis is typically performed for a planning period of one year or less. This is because it is important for businesses to have a clear understanding of the point at which their revenues will cover their costs in the short term, so they can make necessary adjustments to improve profitability. Planning for longer periods may not be as accurate, as factors such as inflation, changes in market conditions, and shifts in consumer preferences can all have a significant impact on a business's breakeven point over time.

Breakeven Analysis Is Normally Performed for a Planning Period Of