A Weakness of Break-Even Analysis Is That It Assumes

question 90

Multiple Choice

A weakness of break-even analysis is that it assumes

• A) revenue and costs are a linear (constant) function of volume.
• B) prices and costs increase when the economy is strong and confidence is high.
• C) cost of goods sold go up as revenue increase.
• D) there is no weakness

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An equity account that records increases in the carrying amount of a company's assets, reflecting changes in value over time.