The Formula for Break-Even Analysis Includes Which of the Following

question 5

Multiple Choice

The formula for break-even analysis includes which of the following components?

• A) depreciation
• B) forecasted sales
• C) forecasted cash requirements
• D) variable cost per unit of output

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Definitions:

Operating Costs

Expenses related to the day-to-day functioning of a business, excluding costs directly associated with the production of goods or services.

Direct Costs

Costs that can be traced directly to a cost object.

Cost Object

Anything for which a separate measurement of cost is desired, including products, services, projects, or customers.

Indirect Costs

Costs that cannot be traced directly to a cost object.