Mechanical Engineering - Industrial Engineering and Production Management - Discussion

Discussion Forum : Industrial Engineering and Production Management - Section 2 (Q.No. 3)
Break even analysis is a
short term analysis
long term analysis
average of short and long term analysis
any one of these
Answer: Option
No answer description is available. Let's discuss.
3 comments Page 1 of 1.

Gurudas Goswami said:   3 months ago
A break-even analysis is an economic tool that is used to determine the cost structure of a company or the number of units that need to be sold to cover the cost. Break-even is a circumstance where a company neither makes a profit nor a loss but recovers all the money spent.

The break-even analysis is used to examine the relationship between fixed cost, variable cost, and revenue. Usually, an organisation with a low fixed cost will have a low break-even point of sale.

Anket said:   6 years ago
Break even analysis is short term analysis because in the long run all cost are variable.

Mohan N said:   6 years ago
Why not long term?

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