Which Statement Does NOT Accurately Describe Breakeven Analysis

question 219

Multiple Choice

Which statement does NOT accurately describe breakeven analysis?

• A) The breakeven analysis model assumes per-unit costs vary at different levels of operation.
• B) The breakeven analysis model assumes that costs can be divided into fixed and variable costs.
• C) The breakeven analysis attempts to use only costs directly associated with specific outputs in price setting.
• D) The breakeven analysis can be used to determine the sales level needed to cover costs but not to achieve specific profit levels.

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Definitions:

Job Ranking

A method of job evaluation that involves creating a hierarchy of jobs from lowest to highest based on their overall value to the organization.

Point Method

A technique used in job evaluation to quantify the value of a job's aspects or components, assigning points based on complexity, skills required, and responsibilities.

Expectancy Theory

A motivation theory suggesting that an individual's willingness to work is based on the expectation that their efforts will lead to desired performance and rewards.

Instrumentality Theory

A concept in motivation theory that suggests the perceived relationship between performance and outcomes affects motivation.