The cash breakeven point is used when certain noncash charges, such as depreciation, constitute an important portion of the firm's fixed operating costs.

Name: The cash breakeven point is used when certain noncash charges, such as depreciation, constitute an important portion of the firm's fixed operating costs.
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Question

Quizplus · Accepted Answer

The statement is true; the cash breakeven point is used when noncash charges like depreciation are a significant part of a firm's fixed operating costs.

The Cash Breakeven Point Is Used When Certain Noncash Charges