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Which of the following is NOT a correct statement regarding break-even? Accounting break-even is the sales level that results in zero project net income. The
Which of the following is NOT a correct statement regarding break-even?
Accounting break-even is the sales level that results in zero project net income. | ||
The cash break-even is the sales level that results in zero OCF. | ||
The financial break-even is the sales level that results in zero NPV. | ||
If there is depreciation the cash break-even will exceed the accounting break-even | ||
Of the three break-evens, the financial break-even point is typically the highest. |
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