Final answer:
Cash break-even analysis is true to eliminate non-cash charges like depreciation from fixed costs since it focuses on actual cash flow, excluding expenses that do not require a cash outlay.
Step-by-step explanation:
The statement that cash break-even analysis eliminates depreciation expense and other non-cash charges from fixed costs is True. A cash break-even analysis is primarily focused on the actual cash flow of a business rather than accounting figures that do not affect cash flow directly. In this analysis, non-cash expenses like depreciation are not considered because they do not involve an outlay of cash. Instead, the analysis considers the revenues needed to cover only the cash-based fixed and variable costs of the business, thereby determining the level of sales required to avoid cash deficits.