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Explain the Break-Even Analysis
The study of cost volume profit analysis is often referred to as break-even analysis and the two terms are used interchangeably by many. This is so because break-even analysis is the most widely known form, of cost volume profit analysis. The term break even analysis is used in two senses narrow sense and broad sense . in its broad sense break even analysis refers to the study of relationship between costs volume and profit at different levels of sales or production . in its narrow sense to technique of determining that levels of operations where total revenues equal total expenses, i.e. the point of profit , no loss .
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