The Accounting Break-Even Point Is That Level of Sales Where

question 75

Multiple Choice

The accounting break-even point is that level of sales where:

• A)sales revenue equals variable costs.
• B)sales revenue equals variable plus fixed costs.
• C)EBIT equals depreciation expense, and, thus cash flow equals zero.
• D)EBIT equals zero.

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Definitions:

Standard Deviation

An indicator of the diversity or variability within a data set, reflecting how much individual data points differ from the mean.

Normally Distributed

Refers to a probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Mean

The average of a set of values, calculated by dividing the sum of all values by the number of values.

Standard Deviation

An indicator used to determine the degree of scatter or deviation present in a group of data points.