Which of these is a limitation in applying break-even analysis?

Question

Quizplus · Accepted Answer

Break-even analysis may have limitations in multi-product businesses, where there may be difficulty in determining the contribution margins of individual products. The analysis may also not be feasible with stepped fixed costs, where the fixed costs are not constant but rather incur in steps. Additionally, the analysis assumes a linear cost and revenue relationship, which may not hold true in certain situations. Hence, all of the given options are limitations in applying break-even analysis.

Which of These Is a Limitation in Applying Break-Even Analysis