In breakeven analysis, the reduction of the fixed cost of an alternative, while leaving all other costs of alternatives the same
A) Will make it relatively more attractive at lower volumes of production
B) Will make it relatively less attractive at lower volumes of production
C) Will not change its attractiveness at lower volumes but will make it more expense on a per unit bases
D) Will result in the variable cost increasing because the combination of variable and fixed costs must stay the same.
Which of the following is generally not a reason businesses focus on short-term cost reduction instead of long-term cost reduction?
A) The sum of short-term costs is generally greater than the sum of long-term costs
B) Management promotions are based on short-term measures of performance
C) Investors want quick results
D) Long-term cost savings may appear to be less than they actually are
E) None of the above is a reason businesses focus on short-term cost reduction instead of long-term cost reduction
Breakeven analysis is used
A) When variance analysis can't be performed
B) As an alternative to direct tracing
C) To decide among alternatives with different fixed and variable costs
D) To decide among alternatives with financial and nonfinancial costs
E) To decide between short-term and long-term cost reduction.