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CMA (Cost Minimization Analysis) is a method which seeks to minimize the cost of the output, which has the form of standard. CMA (Cost Minimization Analysis) is a method which seeks to minimize the cost of the output, which has the form of standard. This method is used if we have set the desired output standard. CMA is one of the monocriterial evaluation methods of public expenditure. Inputs are monetary units, outputs are not measured.
The reduction in cost per unit is an economy due to scale. Determining the fixed and variable expenses is the first step in performing a break-even analysis. The number of units needed to break even = fixed costs / (price-variable costs per unit). This equation provides a small business owner with a great deal of valuable information by itself, and it can also be changed to answer a number of important questions, like whether a planned expansion will be profitable.