Which of the following is a limitation of break-even analysis?
A)It does not give an estimate of how much profit can be earned once the break-even point is obtained.
B)It does not give weightage to the cost of labor that is incurred during production.
C)Sometimes it cannot predict the effect of changes in sales price.
D)Sometimes it is hard to know whether a cost is fixed or variable.

Question

Quizplus · Accepted Answer

The Answer of Which of the following is a limitation of break-even analysis?
A)It does not give an estimate of how much profit can be earned once the break-even point is obtained.
B)It does not give weightage to the cost of labor that is incurred during production.
C)Sometimes it cannot predict the effect of changes in sales price.
D)Sometimes it is hard to know whether a cost is fixed or variable.

Which of the Following Is a Limitation of Break-Even Analysis