Breakeven analysis

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  • Created by: megangore
  • Created on: 30-03-16 17:07
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  • Breakeven analysis
    • Strengths
      • It allows managers to model "what if" situations
      • BE is a simple and quick method to examine the effect of any changes in cost or prices
      • Results can be displayed clearly
    • Weaknesses
      • Information is only accurate at the time collected
      • Collecting information can be expensive and time consuming
      • BE assumes that a business sells its entire output
      • BE should not be the only tool use during decision making

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