This post addresses minimizing errors in projections.
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Break even analysis utilizes both current and projected figures. In a rapidly changing economy, there are many individuals who are finding that their initial break even analyses were incorrect. In your opinion, what could be done to minimize errors in projections?
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The solution discusses what could be done to minimize errors in projections from a break even analysis.
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Because the break even analysis is based on both current and historical figures, there are separate actions that need to be taken in each. Management needs to ensure that the current numbers and data being used is accurate. Transposition errors can be common, particularly if management is rushed. A break even analysis should always be verified by a second person for ...
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