227k views
0 votes
In order to conduct a cash break-even analysis, the analyst must add back depreciation from fixed costs. True False

1 Answer

2 votes

Final answer:

The analyst does not need to add back depreciation from fixed costs for a cash break-even analysis.

Step-by-step explanation:

In order to conduct a cash break-even analysis, the analyst does not need to add back depreciation from fixed costs. This statement is False. Depreciation is a non-cash expense and should not be included in the cash break-even analysis. The cash break-even analysis focuses on determining the minimum level of sales needed to cover all cash expenses.

User Dave Merwin
by
8.2k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories