Figure 13-7B -In the Break-Even Chart in Figure 13-7 Above, the Triangular

question 37

Multiple Choice

Figure 13-7B
-In the break-even chart in Figure 13-7 above, the triangular area FBE represents the firm's

• A) fixed costs.
• B) break-even point.
• C) variable costs.
• D) profit.
• E) total revenue.

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Definitions:

Standard Cost Card

A detailed listing of the standard amounts of inputs and their costs that are required to produce one unit of a specific product.

Standard Variable Cost

The budgeted, per-unit cost of variable elements of production, such as materials and labor, under normal operating conditions.

Direct Materials

The cost of raw materials that can be directly traced to the production process.

Materials Price Variance

The difference between the actual cost of materials used in production and the expected standard cost, which can indicate changes in material costs over time.