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considerations. Additionally, the traditional income statement becomes less useful for developing projects that will take several years to mature. A long-run perspective is important in a variety of circumstances, such as when variable or fixed costs arise only in the first year that a product or service is provided to customers. 1. Ignoring the relevant range when setting assumptions about cost behavior to disregard the implications of cost changes on the calculation of BEP or CVP analysis 2. Treating some or all fixed costs as per-unit costs (i.e., using absorption costing) in calculating BEP or performing CVP analysis 3. Using untested or inaccurate assumptions about the relationship between variables such as

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