Which of the Following Statements About Break- Even Analysis Is

question 3

Multiple Choice

Which of the following statements about break- even analysis is true?

• A)It is used to determine how much production experience a company must have to achieve desired efficiencies.
• B)It is a technique used to calculate fixed costs.
• C)It is a technique marketers use to examine the relationship between supply and demand.
• D)It determines the amount of retained earnings a company will have during an accounting period.
• E)It is calculated using variable costs,the unit price,and fixed costs.

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Definitions:

Indirect Method

A way of presenting the cash flow statement where net income is adjusted for changes in balance sheet items to calculate cash flow from operating activities.

Net Income

Represents a company's earnings after all expenses, charges, and taxes have been subtracted from total revenue, reflecting the financial health of the company.

Operations

Refers to the day-to-day activities necessary for a business to function, encompassing production, sales, and distribution.

Net Operating Cash

The amount of cash generated by the regular operating activities of a business within a specific period.