Advantages and Disadvantages of BEA

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By: willravilob (74 month(s) ago)

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Break Even Analysis : 

Break Even Analysis

Advantages of BEA : 

Advantages of BEA Easy to understand and use Profit and loss is easy to calculate at different levels of output The impact of a change to cost can be measured by changing TC line Can measure the impact of a price change by moving the TR line Allows a company to carry out a “What If?” analysis

Disadvantages of BEA : 

Disadvantages of BEA Is too simplistic in assuming that all prices/costs are constant Any conclusions drawn are only as accurate as the data they are based on Assumes that all output is sold