The Difference Between an NPV Break-Even Level of Sales and an Accounting

question 77

Multiple Choice

The difference between an NPV break-even level of sales and an accounting break-even level of sales is the:

• A) consideration of opportunity cost.
• B) consideration of interest expense.
• C) allowance of the sales level to vary in response to changes in demand.
• D)inclusion of income taxes.

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Definitions:

Cognitive Interpretation

The process by which individuals perceive, comprehend, and interpret information mental.

Need For Achievement

A psychological characteristic that drives individuals to strive for success in tasks where they are evaluated against some standard of excellence.

Maximise

To increase or make as great as possible.

Difficult Task

A task that requires significant effort, skill, or knowledge to complete, and often poses a challenge to the individual attempting it.