A Major Assumption of Breakeven Analysis and One Which Causes

question 173

Multiple Choice

A major assumption of breakeven analysis and one which causes severe limitations in its use is that ________.

• A) fixed costs really are fixed
• B) total revenue is nonlinear
• C) revenues and operating costs are linear
• D) all costs are really semi-variable

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Definitions:

Cortex

The outer layer of the brain, involved in numerous high-level functions, including sensation, perception, memory, association, thought, and voluntary physical action.

Limbic System

A complex system of nerves and networks in the brain, involved with instinct and mood control, and the basic emotional drives.

Umami

One of the five basic tastes, characterized by a savory or meaty flavor, and attributed to the presence of glutamates and nucleotides.

Primary Tastes

The fundamental groups of tastes recognized by human taste perception, including sweet, sour, salty, bitter, and umami.