Finance

Advantages And Limitations Of Break-Even Analysis

Break-even Charts help in: Determining total cost, variable cost and fixed cost at a given level of activity. Finding out break-even output or sales. Understanding the cost, volume, profit relationship. Making inter-firm comparisons. Forcasting profits. Selecting the best product mix. Enforcing cost control. On the negative side, break-even analysis suffers Read more…

By Anagha Sanil, ago
Accountancy

The utility of cash flow analysis

            Cash flow analysis yields the following advantages: It is very helpful in understanding the cash position of the firm. This would enable the management to plan and coordinate the financial operations properly. Since it provides information about cash which would be available from operations the management would be in Read more…

By Anagha Sanil, ago