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 requires the calculation of marginal revenue.
C) It strictly considers demand.
D) It assumes variable cost per item,which is difficult to calculate.
E) It can only be expressed 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.

Which of the Following Statements Describes a Limitation Associated with Break-Even