Which statement does NOT accurately describe breakeven analysis?
A) The breakeven analysis model assumes per-unit costs vary at different levels of operation.
B) The breakeven analysis model assumes that costs can be divided into fixed and variable costs.
C) The breakeven analysis attempts to use only costs directly associated with specific outputs in price setting.
D) The breakeven analysis can be used to determine the sales level needed to cover costs but not to achieve specific profit levels.

Question

Quizplus · Accepted Answer

The Answer of Which statement does NOT accurately describe breakeven analysis?
A) The breakeven analysis model assumes per-unit costs vary at different levels of operation.
B) The breakeven analysis model assumes that costs can be divided into fixed and variable costs.
C) The breakeven analysis attempts to use only costs directly associated with specific outputs in price setting.
D) The breakeven analysis can be used to determine the sales level needed to cover costs but not to achieve specific profit levels.

Which Statement Does NOT Accurately Describe Breakeven Analysis