For which of the following is break-even analysis not appropriate?
A) deciding how much of a product must be sold to make a profit
B) evaluating different processes
C) deciding whether it is better to make or buy a product
D) deciding between different products
E) deciding how to allocate overhead

Question

Quizplus · Accepted Answer

Break-even analysis is primarily used to determine the point at which revenue received equals the costs associated with receiving the revenue. It helps in making decisions related to production levels, pricing, and choosing between alternatives that directly impact revenue and costs. However, it is not typically used for deciding how to allocate overhead costs, as these are often fixed and allocated based on predetermined criteria rather than a break-even analysis.

For Which of the Following Is Break-Even Analysis Not Appropriate