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It Is Misleading to Call a Cost-Volume-Profit Graph a Break-Even

Question 145

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It is misleading to call a cost-volume-profit graph a break-even graph.Why?


A) The graph reveals more information than the break-even point.
B) The graph does not show the break-even point.
C) The main purpose of the graph is to show the cost drivers for different activity levels.
D) The main purpose of the graph is to show the margin of safety.

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