Which of the following is true of simple break-even analysis?
A)It ignores the selling price of a product.
B)It does not give weightage to the cost of labor that is incurred during production.
C)It is applicable only when the demand for a product is elastic.
D)It ignores the demand for a product.

Question

Which of the following is true of simple break-even analysis?
A)​It ignores the selling price of a product.
B)It does not give weightage to the cost of labor that is incurred during production.
C)It is applicable only when the demand for a product is elastic.
D)​It ignores the demand for a product.

Quizplus · Accepted Answer

Simple break-even analysis ignores the demand for a product. It only focuses on determining the level of production at which a company's total revenue equals total costs.

Which of the Following Is True of Simple Break-Even Analysis