Which of the Following Statements Is Correct About the Break-Even

question 20

Multiple Choice

Which of the following statements is correct about the break-even point?

• A)The break-even point is the point where a company achieves its target profit.
• B)The break-even point is the point where all variable costs are covered (but fixed costs are not).
• C)The break-even point is the point where all fixed costs are covered (but variable costs are not).
• D)The break-even point quantifies the number of units that must be sold to cover total costs with zero profit.

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Definitions:

Ingredients

The components or elements that are combined to create a product, especially in food manufacturing or pharmaceuticals, key to quality and regulatory compliance.

Postponement

A supply chain strategy that delays customization or final assembly of a product until customer orders are received to reduce inventory costs and improve customization.

Large Variety

Refers to a wide assortment or range of different items or categories, often used in the context of inventory or product offerings.

Independent Demand

The need for a product or material that is not influenced by the demand for other items but is determined by external market conditions or customer orders.