Firms Often Calculate a Project's Break-Even Sales Using Accounting Profit

question 55

Multiple Choice

Firms often calculate a project's break-even sales using accounting profit. However, break-even sales based on NPV is generally

• A)higher than the one calculated using accounting profit.
• B)lower than the one calculated using accounting profit.
• C)equal to the one calculated using accounting profit.
• D)not related to the one calculated using accounting profit.

Learn the principles of effective investment planning and the steps involved.

Understand the role and benefits of professional financial planning and investment management.

Distinguish between safe and speculative investments based on investor profiles.

Know the responsibilities and obligations of corporations to their shareholders.

---

Definitions:

Emphasizing

The act of giving particular importance or priority to a part of a message or piece of information.

De-emphasizing

A strategy used in communication to make certain information seem less important or prominent.

Preaching

The act of delivering a religious message or sermon, often based on scripture, to a group of people.

Courteous

Showing consideration, respect, and politeness in one's behavior and interactions with others.