Which of the Following Would Not Cause the Break-Even Point

question 7

Multiple Choice

Which of the following would not cause the break-even point to change?

• A)Sales price increases.
• B)Fixed cost decreases.
• C)Sales volume decreases.
• D)Variable costs per unit increases.
• E)Product mix shifts towards the cheaper products.

---

Definitions:

Traditional Costing System

A costing methodology that assigns manufacturing costs to products based on volume metrics such as direct labor hours or machine hours.

Unit Product

A specific item or version of a product, distinct in unit size or configuration, produced by a company.

Direct Labor-Hours

The total time workers spend producing a product or performing a service, specifically those directly involved in manufacturing.

Activity-Based Costing

A technique for determining costs that discerns activities in an organization and charges the cost of these activities to all products and services, based on the real amount each consumes.