__________ performs what-if calculations under different revenue and cost conditions.
A) Breakeven analysis
B) Profit analysis
C) Loss analysis
D) Marginal analysis

Question

Quizplus · Accepted Answer

Breakeven analysis is a tool that helps determine the level of sales necessary to cover all expenses and neither make a profit nor incur a loss. It allows for what-if calculations under different revenue and cost conditions to identify the breakeven point. Therefore, it is the best choice in this scenario. Profit analysis evaluates the profitability of a company; loss analysis evaluates the loss incurred by a company, and marginal analysis examines the effect of a change in sales volume on the profit.

__________ Performs What-If Calculations Under Different Revenue and Cost Conditions