Which of the following statements regarding break-even analysis is true?
A)Break-even analysis reflects how demand may be affected at different price levels.
B)Break-even analysis does not measure price sensitivity.
C)Break-even analysis does not measure the cost of sales.
D)Break-even analysis is an accurate measure of variable costs.
E)Break-even analysis is an accurate measure of fixed costs.

Question

Quizplus · Accepted Answer

Break-even analysis focuses on determining the point at which total revenues equal total costs, without considering price sensitivity.

Which of the Following Statements Regarding Break-Even Analysis Is True