In a CVP Graph, the Break-Even Point Is Determined as the Point

question 10

True/False

In a CVP graph, the break-even point is determined as the point that the total revenue line intersects with the total fixed expenses line.

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Definitions:

Disbursement Float

Float created before cheques written by a firm have cleared and been deducted from the firm’s account. Disbursement float causes the firm’s own cheque-book balance to be smaller than the balance on the bank’s records.

Net Float

The difference between a firm’s disbursement float and collections float.

Marketable Securities

Financial instruments and assets that can easily be sold or converted into cash, typically within a year.

Credit Rating

Evaluating the likelihood that a borrower can repay their debt, either in general or in relation to a specific financial commitment.