COST ACCOUNTING
BREAK EVEN POINT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When would it be useful for a business to calculate the break-even output?
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If it needed a loan.
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To determine whether profit would be made at different sales levels.
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.To determine the level of competition.
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If the business was planning a change in tis selling price.
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To determine how much the business had to sell to break-even.
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Explanation:
Detailed explanation-1: -Break-even analysis is a way to find out the minimum sales volume so that a business does not suffer losses. A break-even point analysis is a powerful tool for planning and decision making, and for highlighting critical information like costs, quantities sold, prices, and so much more.
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