The difference between an NPV break-even level of sales and an accounting break-even level of sales is:
A) the consideration of opportunity cost.
B) the consideration of depreciation expense.
C) the allowance of the sales level to vary in response to changes in demand.
D) the inclusion of income taxes.

Question

Quizplus · Accepted Answer

The NPV break-even level of sales considers opportunity costs, which are not accounted for in the accounting break-even analysis.

The Difference Between an NPV Break-Even Level of Sales and an Accounting