The purpose of break-even analysis is to find the revenue needed to co

QUESTION

The purpose of break-even analysis is to find the revenue needed to cover the total cost of making a product.

Indicate whether the statement is true or false.

ANSWER

Answer: TRUE
Explanation: The purpose of break-even analysis is to find the break-even point—the point at which sales revenues equal costs; that is, at which there is no profit but also no loss.