APPENDIX C

A Short Genealogy of Breakeven Analysis

One could argue that the thinking behind breakeven analysis has been in use for centuries if not millennia. The development of breakeven formulas and charts, like many ideas in management, appears to have emerged out of the rich history of 19th-century economics. In practice, several streams of thought contributed to the development of the breakeven tools represented in this book: the applicability of cost accounting in managerial decision making and the emphasis on efficiency, a legacy of the turbulent scientific management movement, played a part in bringing breakeven analysis to the forefront. Out of this social context, marginal analysis, the concept of the economic indifference point, and ...

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