TRUE or FALSE: The break-even point for a business is where total revenue is the same as total costs. At this point the business is making neither a profit or a loss.
Responda
TRUE
FALSE
Questão 2
Questão
The normal method used to calculate the break-even point is:
Break-even = total fixed costs / ___________
Responda
unit contribution (the difference between selling price and variable costs)
variable cost
fixed cost
revenue
Questão 3
Questão
TRUE or FALSE: Variable costs do not always change in proportion to output (e.g. bulk-buying discounts, or overtime paid to manufacturing employees)
Responda
TRUE
FALSE
Questão 4
Questão
Break-even analysis is difficult to use if the business makes .......
Responda
The same product
Makes more than one product
Questão 5
Questão
The point at which a business goes from loss into profit can be seen on:
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a pie chart
a break-even chart
a bar chart
an organization chart
Questão 6
Questão
A fixed cost is one that:
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does change as output changes
does not change as output changes
does change as profit changes
does not change as profit changes
Questão 7
Questão
Contribution in break-even analysis is the difference between:
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fixed costs and variable costs
fixed costs and sales
sales and variable costs
profit and loss
Questão 8
Questão
The difference between the break-even output level and the expected output is the:
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margin of safety
area of loss
total fixed costs
break-even revenue
Questão 9
Questão
Total costs in break-even analysis are shown by:
Responda
fixed costs plus direct costs
fixed costs plus variable costs
sales less fixed costs
sales less variable costs
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