Which of the following is NOT a correct statement regarding break-even?
A) Accounting break-even is the sales level that results in zero project net income.
B) The cash break-even is the sales level that results in zero OCF.
C) The ﬁnancial break-even is the sales level that results in zero NPV.
D) If there is depreciation the cash break-even will exceed the accounting break-even.
E) Of the three break-evens, the ﬁnancial break-even point is typically the highest.

Question

Quizplus · Accepted Answer

If there is depreciation, the accounting break-even will exceed the cash break-even because accounting break-even includes depreciation as a non-cash expense, while cash break-even does not.

Which of the Following Is NOT a Correct Statement Regarding