Break Even Is Mot Useful When Flashcards
1
Q
1
A
Break-even assumes prices and costs remain constant
2
Q
2
A
As sales volume increases, businesses will need to buy more raw materials/stock
3
Q
3
A
May be able to benefit from purchasing economies of scale
4
Q
4
A
Gain a discount from buying in bulk
5
Q
5
A
Leading to various costs falling as output rises
6
Q
6
A
Increasing contribution per unit
7
Q
7
A
Break-even ignore this so may be inaccurate
