Break-even analysis can be used for
A
Short run analysis
B
Long run analysis
C
Average of above two run analysis
D
There is no such criterion
Correct Answer: Short run analysis
Break-even analysis is a technique widely used by production management and management accountants.Total variable and fixed costs are compared with sales revenue in order to determine the level of sales volume, sales value or production at which the business makes neither a profit nor a loss.