For Any Product, the Breakeven Quantity Is the

question 175

Multiple Choice

For any product, the breakeven quantity is the

• A) number sold over fifty units.
• B) number sold such that costs equal revenues.
• C) total number produced to equal the total resources available to the producer.
• D) number of products needed to be sold in order to make a reasonable profit.
• E) dollar volume of total sales.

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Definitions:

Finished Goods

Finished Goods are products that have completed all stages of production and are ready for sale to customers.

FIFO Process Cost Method

An accounting method for valuing inventory and the cost of goods sold based on the assumption that the earliest goods purchased or manufactured are sold first.

Equivalent Units

A method used in process costing that converts partially completed units into a number of fully completed units.

Direct Materials Costs

The cost of raw materials that are directly used in the manufacture of a product.