The Break-Even Point (BEP) = [Fixed Cost ÷ (________ −

question 52

Multiple Choice

The break-even point (BEP) = [Fixed cost ÷ (________ − Unit variable cost) ].

• A) Total cost
• B) Total expense
• C) Fixed cost
• D) Unit variable cost
• E) Unit price

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Definitions:

Ending Inventory

The total value of all unsold goods that a company has in its possession at the end of an accounting period.

Fire Screens

Protective barriers placed in front of fireplaces to prevent sparks from escaping into the room.

FIFO Method

A method of inventory valuation where the first items placed in inventory are the first ones sold, standing for First-In, First-Out.

Ending Inventory

The total value of all goods available for sale at the end of an accounting period.