Which of the following appears to be a more suitable investment?
A) Revenues cover fixed and variable costs
B) Investment breaks even in an accounting sense
C) Investment breaks even in an economic sense
D) Revenues exceed cost of goods sold

Question

Quizplus · Accepted Answer

Breaking even in an economic sense means that the investment is generating enough revenues to cover all costs, including the opportunity cost of not investing the resources elsewhere. This indicates a profitable investment and therefore appears to be a more suitable option.

Which of the Following Appears to Be a More Suitable