Which of the Following Is a Limitation of Break-Even Analysis

question 13

Multiple Choice

Which of the following is a limitation of break-even analysis?

• A)​It does not give an estimate of how much profit can be earned once the break-even point is obtained.
• B)It does not give weightage to the cost of labor that is incurred during production.
• C)It is applicable only when the demand for a product is elastic.
• D)​It is hard to determine which costs are fixed and which costs are variable.

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Definitions:

Organisation

An entity comprising multiple people, such as an institution, association, or business, working together to achieve a common goal or set of objectives.

Self-Managed Teams

Groups of employees who collectively assume responsibility for organizing, controlling, and supervising their own work activities.

Job Satisfaction

The level of contentment employees feel with their job roles, responsibilities, and work environment.

Quality of Service

The assessment of how well a delivered service matches the expectations of the customer.