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

Question

Quizplus · Accepted Answer

Accounting break-even analysis only considers the costs and revenues that are directly related to the production of goods or services. Shareholders' expected rate of return is a cost that is outside the scope of this analysis. Variable production costs, contribution margin, and depreciation expense are all factors that are included in the calculation of accounting break-even.

Which of the Following Costs Is NOT Included in an Accounting