Basic Break-Even Analysis Typically Assumes That

question 17

Multiple Choice

Basic break-even analysis typically assumes that:

• A)revenues increase in direct proportion to the volume of production,while costs increase at a decreasing rate as production volume increases.
• B)variable costs and revenues increase in direct proportion to the volume of production.
• C)both costs and revenues are made up of fixed and variable portions.
• D)costs increase in direct proportion to the volume of production,while revenues increase at a decreasing rate as production volume increases because of the need to give quantity discounts.
• E)All of the above are assumptions in the basic break-even model.

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Definitions:

Save Face

Actions taken to preserve one's reputation or dignity in the face of embarrassing or compromising situations.

Discredited

Lacking credibility or not being accepted as valid or true.

Outcome

The result or effect of an action, situation, or event, which can be anticipated or measured.

Passing

The ability of a person to be regarded as a member of an identity group or category different from their own, especially in contexts of gender, race, social class, etc.