An analysis of the relationship between the sales volume and various measures of profitability is called _____ analysis.
A) forecasting
B) scenario
C) sensitivity
D) simulation
E) break-even

Question

Quizplus · Accepted Answer

The analysis described in the question is likely referring to break-even analysis, which involves examining the relationship between sales volume and profit (or loss) at different levels of output. By calculating the break-even point, businesses can determine the minimum level of sales needed to cover their costs and avoid a loss. Therefore, E (break-even) is the best choice. The other options (forecasting, scenario, sensitivity, and simulation) may involve analyzing sales and profitability, but they are not specifically focused on the relationship between these two factors as break-even analysis is.

An Analysis of the Relationship Between the Sales Volume and Various