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Is break-even analysis an effective method for evaluating financial resource allocation decisions?

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  • Post Date 2018-11-05T10:54:39+00:00
  • Post Category Assignment Requirements

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Is break-even analysis an effective method for evaluating financial resource allocation decisions?

Is break-even analysis an effective method for evaluating financial resource allocation decisions? 

1.First, you must start with the assumptions of the break-even analysis and identify the most important assumptions which can override the rest of the assumptions if they are held true
2. Second, you need to clarify what kinds of financial resource allocation decisions which you will use to reflect your understanding of the topic.
3.Third, you need to link the assumptions with the financial resource allocation decision of your choice in the submission which aims to showcase your understanding of the coursework topic
4.Fourth: you can use other methods (equivalent or better than the break-even analysis) to support your arguments and statements. You can find plenty of alternative evaluation methods in the CIMA report 2009 (page 18) to compare with and contrast to the break-even analysis.


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