A Company's Break-Even Point Would Change If There Were an Increase

question 61

Multiple Choice

A company's break-even point would change if there were an increase in:

• A) Sales volume
• B) Total fixed costs due to a plant addition
• C) Total production volume
• D) Total variable costs due to higher production volume

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Definitions:

Accounting Records

Documentation and books that keep track of the financial transactions of a business or individual, forming the basis for its financial statements.

Asset

Resources controlled by a business from which future economic benefits are expected to flow to the business, including both physical items and intangible properties.

Credit

An entry on the right side of a double-entry bookkeeping system that increases liabilities and equity or decreases an asset or expense.