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:

Administrative Law

The body of law that governs the creation and operation of administrative agencies, including the rules and regulations they enact.

Stare Decisis

A legal principle that dictates that courts should follow the precedents set in previous legal decisions.

Doctrine of Precedent

A legal principle whereby previous judicial decisions influence or control the ruling on similar future cases.

Substantive Law

The set of laws that governs the rights and duties of people within society, as opposed to procedural law which dictates how those rights and duties are enforced.