The Break-Even Point Is the Volume of Activity Where

question 7

Multiple Choice

The break-even point is the volume of activity where:

• A)total revenue equals total cost.
• B)variable cost equals fixed cost.
• C)total contribution margin equals the sum of variable cost plus fixed cost.
• D)sales revenue equals total variable cost.
• E)profit is greater than zero.

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Definitions:

Temporal Discounting

The tendency to devalue rewards and consequences that happen in the future in favor of immediate gratifications.

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, arising from a traumatic event or persistent failure to succeed.

Certainty Effect

The tendency of people to overweight outcomes that are certain relative to outcomes which are only probable.

Incremental Theorist

An Incremental Theorist believes that personal qualities, such as intelligence and ability, can be developed over time through effort and perseverance.