Break -Even Analysis Is the Process of Determining Before We

question 26

Multiple Choice

Break -even analysis is the process of determining before we begin earning a profit.

• A) what price will be charged for a product, or how much net profit will be made
• B) how many units must be produced, or how much revenue must be obtained
• C) how much net profit will be made, or how many units will be produced
• D) how much revenue must be obtained, or how much net profit will be made
• E) what price we will charged for a product, or how many units must be produced

---

Definitions:

Private Funds

capital pooled from private individuals or entities for the purpose of investment, typically in ventures or projects that are not public.

Indirect Costs

Expenses not directly tied to the production of goods or services but necessary for the general operation of an organization, such as administrative expenses or utilities.

Government Funds

Financial resources allocated by governmental bodies to support various programs, projects, services, or organizations.

Administrative Expenses

Costs associated with the general operation of a business or organization, excluding production or direct costs.