Break-Even Analysis refers to the point where total revenue and total expenses are opposite values.

Amanda Barbosa

2 years ago

Question 12 of 18

Career development

Break-Even Analysis refers to the point where total revenue and total expenses are opposite values.

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18 questions (9 min)

Why?

Break-Even Analysis refers to the point where total revenue equals total expenses. It is used to estimate how much income is needed to cover a business' total costs.

Watch the video below for some examples: https://www.youtube.com/watch?v=r8BIz5I-aDc&t

Source: "Break Even Analysis" on corporatefinanceinstitute.com

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