Break even analysis is a system that determine an activity of organization where the total cost is equal to the total selling price. Simply to say that break even analysis is an activity of identifying the break even point. It is an identification and determination of the point where business performance is in no profit and no loss condition. For a smooth business operation break even point is very important for management and organization. Break even analysis identifies breK even point. It helps managers for an effecting business forcasting.It helps managers in effective pricing policies implementation.
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