Usefulness/Importance of Break-Even analysis
Posted by Ripon Abu Hasnat on Tuesday, December 1, 2015 | 0 comments
1. Fair knowledge about break even analysis can help bankers/banking to examine loan proposal of a firm.
2. Break even analysis helps the bankers in assessing working capital requirement of a unit.
3. This analysis helps in revealing clear projections of profit planning of an enterprise at different production level vis-à-vis the financial needs.
4. It also helps to find rate of return on investment of capital at varying levels of production.
5. Break-even lies can be quite useful to management in determining the need for action.
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