The Financial Break-Even Point Is Defined as the Point Where

question 323

Multiple Choice

The financial break-even point is defined as the point where the quantity is equal to:

• A) (Fixed costs + depreciation)/(price per unit - variable cost per unit).
• B) (Fixed costs + depreciation + the operating cash flow that produces a zero net present value)/(price per unit - variable cost per unit).
• C) (Price per unit - variable cost per unit)/(fixed costs + depreciation).
• D) (Price per unit - variable cost per unit)/(fixed costs + the operating cash flow that produces a zero net present value).
• E) (Fixed costs + the operating cash flow that produces a zero net present value)/(price per unit - variable cost per unit).

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Definitions:

Relevant

Pertaining to decision-making, it refers to information or data that can influence the outcome of the decision.

Incurred Costs

Expenses that have been realized in the course of business operations.

Alternatives

Different options or choices available in a decision-making process.

Traceable

Costs or items that can be directly linked or attributed to a specific product, job, or department, facilitating accurate costing and financial analysis.