Which of the Following Is a Limitation of Break-Even Analysis

Multiple Choice

Which of the following is a limitation of break-even analysis?

A) ​It does not give an estimate of how much profit can be earned once the break-even point is obtained.
B) It does not give weightage to the cost of labor that is incurred during production.
C) It is applicable only when the demand for a product is elastic.
D) ​It is hard to determine which costs are fixed and which costs are variable.