Which one of is not a limitation of break-even analysis

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Reference no: EM13305326

Which one of the following is not a limitation of break-even analysis?

Ans:

A: The total revenue curve (sales curve) is presumed to increase linearly with the volume of output.

B: The break-even chart and the break-even computations are static forms of analysis.

C: Cost-volume-profit relationship is assumed to be linear.

D: Break-even analysis assumes a constant capital structure.

Reference no: EM13305326

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