Break-Even Analysis Indicates the ____ That Will Be Necessary to Justify

question 18

Multiple Choice

Break-even analysis indicates the ____ that will be necessary to justify a new expense.

• A) increase in sales.
• B) increase in costs.
• C) amount of profit.
• D) volume of activity.

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, which must be paid back in the future.

Debts Owed

Amounts of money that are required to be repaid by an individual or organization to creditors.

Drawing Account

A specific account used to record amounts withdrawn by the owner(s) of a business for personal use.

Withdrawals

Amounts taken from a business by its owner(s) for personal use.