A weakness of break-even analysis is that it assumes
A)revenue and costs are a linear (constant) function of volume.
B)prices and costs increase when the economy is strong and confidence is high.
C)the cost of goods sold goes up as revenue increases.
D)None of the options

Question

Quizplus · Accepted Answer

Break-even analysis assumes that revenue and costs are a linear (constant) function of volume, which may not always be the case in real-world scenarios. Other factors like economy, competition, and consumer preferences can also impact revenue and costs.

A Weakness of Break-Even Analysis Is That It Assumes