Before a Company Reaches the Breakeven Point

question 27

Multiple Choice

Before a company reaches the breakeven point:

• A) The total contribution margin is negative.
• B) The contribution margin per unit is less than the fixed costs per unit.
• C) Total fixed costs are increasing.
• D) The contribution margin ratio is negative.

---

Definitions:

Paper-and-pencil Honesty Test

A test method utilizing paper and pencil for evaluating a candidate's truthfulness and moral integrity, commonly used in employment settings.

Polygraph Test

A lie detector test that measures and records several physiological indicators such as blood pressure, pulse, and perspiration.

Cognitive Ability Test

A pre-employment assessment that measures an individual's capability to perform tasks and solve problems.

Personality Inventory Test

A type of psychological test that assesses various aspects of a person's character or psychological makeup, often used in hiring processes.