According to your textbook,which of the following statements describes a limitation associated with break-even analysis?
A)It is sometimes difficult to ascertain whether a cost is fixed or variable.
B)It strictly considers demand.
C)It assumes variable cost per item,which is difficult to calculate.
D)It can be expressed only as a break-even point in dollar amounts.

Question

Quizplus · Accepted Answer

Not all costs are easily categorized because a cost may be fixed when viewed in the short term but variable when considered over a longer period of time.

According to Your Textbook,which of the Following Statements Describes a Limitation