Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

Which of these statements about break-even charts is correct?

  • AAt the break-even point, revenue and fixed costs intersect on the chart.
  • BChoices of optimal activity levels cannot be made using break-even charts.
  • CCosts and revenues are assumed to show linear behaviour.
  • DRevenue in excess of fixed costs represents the margin of safety.

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