Breakeven analysis
- 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
- Strengths
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