The Break-Even Point Is the Point at Which the Total

question 35

Multiple Choice

The break-even point is the point at which the total contribution margin is equal to total:

• A) sales.
• B) variable costs.
• C) fixed costs.
• D) fixed and variable costs.

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Definitions:

Standard Cost

A predetermined cost of manufacturing a single unit or a number of product units during a specific period under current or anticipated operating conditions.

Direct Labor Variances

The differences between the actual costs of direct labor and the standard or expected costs, used for budgeting and cost control.

Direct Labor Workers

Employees who are directly involved in the production of goods or services.

Property, Plant, and Equipment

Long-term tangible assets held for business use and not expected to be converted to cash in the short term.