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One of the consequences of increasing investments in capital assets is: a) an increase in the break even point b) a decrease in the break even point

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Question added by Mir Mujtaba Ali , Internal Audit Manager , Confidential
Date Posted: 2014/12/21
Sahar Alech
by Sahar Alech , Auditor / Financial Manager , Accounting Services Office

Break even point increases

Naveed Nawaz
by Naveed Nawaz , Regional Accountant & Auditor , Toni&Guy (North Pakistan)

Option "A"

Break Even is a level when you recover all your investment without getting anything more than that yet. So, if you increase the investment then ultimately that level will increase too.

Muhammad Ramadan
by Muhammad Ramadan , Chief Accountant , Muntazah Holding Company

an increase in the break even point 

Salah Othman Yousef Alshambaati
by Salah Othman Yousef Alshambaati , مدير ادارة الحسابات , شركة انفال الجديدة للتجارة والمقاولات

Agreed with the answer, Mr. Mohamed Ramadan

MAJOUL Fadhel - CPA- CIA-CFE-CRMA-CISI
by MAJOUL Fadhel - CPA- CIA-CFE-CRMA-CISI , Consulting role related to Internal Audit , Dublin Investment & Management of Health Services Co

Increase in the capital asset => increase in fixed costs => increase of the break even point.

Answer A is the correct choice.

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

The Answer A

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