Which of the following costs is NOT covered in an accounting break-even analysis?
A) Shareholders expected rate of return
B) Variable production costs
C) Interest expense
D) Depreciation expense

Question

Quizplus · Accepted Answer

Accounting break-even analysis only considers the costs that are necessary for producing and selling a product or service, such as variable production costs, fixed costs, and direct labor. Shareholders' expected rate of return is a financial objective and is not considered as a cost. Therefore, it is not covered in an accounting break-even analysis.

Which of the Following Costs Is NOT Covered in an Accounting