Accountancy, asked by Anonymous, 10 months ago

break even point is beneficiary to the organisation how​

Answers

Answered by gratefuljarette
1

Break even point is beneficiary to the organisation

Explanation:

  • Break even point is the point of no profit and no loss because the cost is equal to revenue.
  • Break even point shows the starting point of profit, the area of loss and the margin of safety. It also shows the optimum level of operations.
  • Break even point is a useful tool for management to take important decisions.
  • Break even point is helpful to reach the target of the profit fixed.
  • Break even point is used to know the economic strength and the weakness of the firm.

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break even point is beneficiary to the organisation how​

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