Which One of the Following Is Considered a Limitation of Breakeven

question 57

Multiple Choice

Which one of the following is considered a limitation of breakeven analysis?

• A) It assumes that the firm faces linear, or nonvarying, sales revenue and total operating cost functions.
• B) It is difficult to break semivariable costs into fixed and variable components.
• C) It has a short-term time horizon.
• D) All of the above.

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