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Which of the Following Is a Drawback of the BEP

Question 58

Multiple Choice

Which of the following is a drawback of the BEP analysis?


A) It can discourage future profitable activities if they initially don't seem profitable.
B) It can provide wrong indices of profit and loss and confuse managers.
C) It can only be conducted after production has been completed and inventory costs have been made.
D) It detracts from cost reduction and profit maximization.

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