Break-Even Charts Usually Assume That

question 93

Multiple Choice

Break-even charts usually assume that:

• A) total cost and total revenue curves are straight lines.
• B) profits will grow continually beyond the break-even point.
• C) the break-even point is reached when total cost just equals total revenue.
• D) any quantity can be sold at the assumed price.
• E) All of these are assumptions of break-even charts.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, used in statistics and finance to measure risk or volatility.

Variance

A statistical measure of the dispersion or spread of a set of data points, indicating how much the numbers in the data set deviate from the mean.

Coefficient of Variation

A measure indicating the relative variability of a data set by dividing the standard deviation by the mean, often used to assess risks or volatility in finance.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, used in finance to quantify the risk of an investment.