Benefits & limitations of break-even analysis

IB Business Management: Benefits & limitations of break-even analysis

It provides decision-makers with useful information about forecast costs, revenues, and profits.As a visual tool, the predictions can be easily interpreted.As a strategic decision-making tool, it can help to reduce high-risk decisions.It is highly suitable for single-product businesses.It is useful for analysing and predicting the effects of changes in price and/or costs on the profitability of the business.

To access the entire contents of this site, you need to log in or subscribe to it.

You can also request a Free trial or check the blog (which is also free)

All materials on this website are for the exclusive use of teachers and students at subscribing schools for the period of their subscription. Any unauthorised copying or posting of materials on other websites is an infringement of our copyright and could result in your account being blocked and legal action being taken against you.