Short Assessment - Break-even

Descrição

Break-even Sources of Finance Cash-Flow
Carina Storm
Quiz por Carina Storm, atualizado more than 1 year ago
Carina Storm
Criado por Carina Storm quase 6 anos atrás
177
1

Resumo de Recurso

Questão 1

Questão
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:
Responda
  • a pie chart
  • a break-even chart
  • a bar chart
  • an organization chart

Questão 6

Questão
A fixed cost is one that:
Responda
  • 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:
Responda
  • 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:
Responda
  • 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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