Break-Even Analysis Refers to

question 331

Multiple Choice

Break-even analysis refers to

• A)a process that investigates the magnitude of difference between marginal revenue and marginal cost.
• B)a method of determining just how much a consumer is willing to pay for a product or service.
• C)a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output.
• D)the process of determining the quantity of product consumers will buy relative to the quantity produced by the firm.
• E)the graph that shows the maximum number of products consumers will buy at a given price.

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Definitions:

Inception

The beginning point or establishment of an activity, agreement, or document.

U.S.GAAP

The collection of authoritative standards and principles for financial accounting and reporting in the United States, established by the Financial Accounting Standards Board.

IFRS

International Financial Reporting Standards; a set of accounting standards developed by the International Accounting Standards Board (IASB) aiming at standardizing financial reporting across the globe.

Liquidity

A measure of a company's ability to pay off its short-term liabilities with its available cash and quick assets.