Which one of these is an analysis of the relationship between the sales volume and net present value?

Question

Quizplus · Accepted Answer

Financial break-even analysis involves analyzing the relationship between sales volume and net present value by determining the sales volume needed to cover all fixed and variable costs and break even. This analysis helps determine the minimum sales volume needed to achieve profitability, and therefore, is the best choice for this question. Monte Carlo simulation and forecasting analysis are methods used to predict future outcomes and do not necessarily focus on the relationship between sales volume and net present value. Forecasting simulation is not a commonly used term in financial analysis. Accounting profit break-even analysis is similar to financial break-even analysis but focuses on the relationship between sales volume and accounting profit, not net present value.

Which One of These Is an Analysis of the Relationship