The Break-Even Point Can Be Defined As

question 8

Multiple Choice

The break-even point can be defined as:

• A)that volume of sales whereby total revenues from a project are equal to total variable costs.
• B)that volume of sales whereby total revenues from a project are equal to total variable costs plus total fixed and investment costs.
• C)that volume of sales whereby the present value of revenues from a project are equal to the summation of present values of total variable and fixed costs and the initial outlay.
• D)that volume of sales whereby the present value of revenues from a project are equal to the summation of present values of total variable costs.

---

Definitions:

Principles-based

An approach that bases decisions on general principles or values rather than specific rules.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that are becoming the global standard for the preparation of public company financial statements.

GAAP

Generally Accepted Accounting Principles; a collection of commonly-followed accounting rules and standards for financial reporting.

Accounting For Inventories

The process of tracking and managing the goods a company holds for the purpose of sale or production, including valuation and cost determination.