Which of the Following Statements Regarding Break-Even Analysis Is True

question 136

Multiple Choice

Which of the following statements regarding break-even analysis is true?

• A)Break-even analysis reflects how demand may be affected at different price levels.
• B)Break-even analysis does not measure price sensitivity.
• C)Break-even analysis does not measure the cost of sales.
• D)Break-even analysis is an accurate measure of variable costs.
• E)Break-even analysis is an accurate measure of fixed costs.

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