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