breakeven analysis assumes that all costs are fixed or variable. In reality, this is an...
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Accounting
breakeven analysis assumes that all costs are fixed or variable. In reality, this is an inaccurate assumption. Some costs are semi-variable and mixed. In the book discusses 3 different ways to separate mixed and variable costs into fixed and variable parts, but these are estimates as well. Considering the inaccuracies and estimates in the assumptions, what is the point of doing break even analysis at all?
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