Assumptions for break-even analysis

Q.  Which of the following are assumptions for break-even analysis?

A) Elements of cost cannot be divided in different groups.
B) Fixed cost remains certain from zero production to full capacity.
C) Behavior of different costs is linear.
D) Selling per price unit remains constant.
- Published on 03 Sep 15

a. A, B, C
b. B, C, D
c. A, C, D
d. A, B, D

ANSWER: B, C, D

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