The Accounting Break-Even Point for a Firm Is a Function

question 57

Multiple Choice

The accounting break-even point for a firm is a function of its:

• A) net cash flows and depreciation expense.
• B) fixed costs and gross profit on each sale.
• C) variable costs and tax rate.
• D) revenues and fixed costs.

---

Definitions:

User Cost

User cost comprises the costs associated with the use of a product or service, including wear and tear, maintenance, and the opportunity cost of forgone alternatives.

Extract

To remove or obtain a substance from a source through a process.

Resource

An asset or input used to produce goods and services, such as labor, capital, land, and knowledge.

Nonrenewable Resource

A natural resource that cannot be readily replaced by natural means at a quick enough pace to keep up with consumption.