According to the text,which of the following statements describes a limitation associated with break-even analysis?
A) It can be expressed only as a break-even point in dollar amounts.
B) It considers only demand.
C) It is sometimes difficult to ascertain whether a cost is fixed or variable.
D) It requires the calculation of marginal revenue.

Question

Quizplus · Accepted Answer

One of the limitations of break-even analysis is that it can be difficult to accurately determine and separate fixed and variable costs. This can lead to inaccurate break-even calculations and decisions. The other statements (A, B, and D) are incorrect as they do not accurately describe limitations of break-even analysis.

According to the Text,which of the Following Statements Describes a Limitation