Which of the Following Statements Describes a Limitation Associated with Break-Even

question 127

Multiple Choice

Which of the following statements describes a limitation associated with break-even analysis?

• A) It is sometimes difficult to ascertain whether a cost is fixed or variable.
• B) It requires the calculation of marginal revenue.
• C) It strictly considers demand.
• D) It assumes variable cost per item,which is difficult to calculate.
• E) It can only be expressed as a break-even point in dollar amounts.

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