Which of the following statements is true about break-even analysis?
A. It is quite accurate in maximizing profit.
B. It makes it appear that any quantity can be sold at the assumed price.
C. It suggests that profits will decrease rapidly as sales volume increases beyond the break-even point.
D. It assumes a U-shaped average variable cost curve.
E. It not helpful in evaluating alternatives.
Answer: B
You might also like to view...
When conducting primary research by using interviews, which of the following will have the least effect on responses?
A) the ability to adapt the question set based on response B) the subject's cultural and language background C) the type of questions being asked D) issues such as race, gender, age, and social status E) the way the questions are framed
All of the following statements about the Digital Millennium Copyright Act (DMCA) are true except:
A. the DMCA makes it illegal to circumvent technological measures to protect works. B. the DMCA makes Internet Service Providers (ISPs) responsible and accountable for hosting websites or providing services to infringers regardless of whether the ISP is aware of infringement. C. the DMCA requires search engines to block access to infringing sites. D. the DMCA allows libraries to make digital copies of works for internal use only.
What type of close is being used when the salesperson tells the dentist, "I'm not sure that in the future, my company can keep up with the demand for Protexin oral rinse. I know you prefer it and I can sell you three cases today."
What will be an ideal response?
Goodwill can be recorded as an asset when a(n):
A) business has above normal profitability compared to other businesses in its industry. B) business can determine that it has created customer goodwill and name recognition. C) offer is received to purchase the business at a price in excess of the value of the assets. D) business is purchased and payment is made in excess of the value of the net assets.