The Break-Even Point Is Where the ____ Line Crosses the ____

question 84

Multiple Choice

The break-even point is where the ____ line crosses the ____ line in a graphic break-even analysis.

• A) fixed costs; variable costs
• B) fixed costs; total sales revenue
• C) total costs; total sales revenue
• D) incremental costs; variable costs
• E) short-term costs; long-term costs

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Definitions:

Intra-entity Gross Profit

The profit made on transactions within the same company or between subsidiaries under the same parent company not yet realized outside the entity.

Equity Method

The Equity Method is an accounting technique used to record investments in associate companies, where the investment's carrying value is adjusted to recognize the investor's share of the associates' profits or losses.

Voting Common Stock

Shares of a company that grant the holder the right to vote on corporate matters at shareholder meetings.