The Formula for Break-Even Point in Terms of Units Is

question 52

Multiple Choice

The formula for break-even point in terms of units is:

• A)Total variable costs/Unit contribution margin
• B)Total fixed costs/Contribution margin ratio
• C)Total fixed costs/Unit contribution margin
• D)Total variable costs/Total fixed costs

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Definitions:

Performance Evaluation

The formal assessment process of an employee's job performance, typically conducted through reviews and meetings.

Actual Costing System

A costing method that assigns costs to products based on the actual costs of direct materials, direct labor, and overhead incurred.

Direct Material Price Variance

Direct material price variance measures the difference between the actual cost of direct materials and the expected (or standard) cost, indicating how well a company manages its material costs.

Actual Price

The real or transacted price of a good, service, or asset, usually the amount of money exchanged in the sale.