The Break-Even Point Is Equal to

question 12

Multiple Choice

The break-even point is equal to

• A) fixed costs divided by (sales price per unit - variable cost per unit).
• B) fixed costs divided by unit variable costs.
• C) fixed costs divided by selling price per unit.
• D) (sales price per unit - variable cost per unit) times the fixed costs.

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Definitions:

Perpetual Inventory System

An inventory management system that continuously updates the quantity and value of inventory on hand after each transaction.

LIFO Method

"Last In, First Out," an inventory costing method where the last items placed in inventory are the first ones to be used or sold.

Schedule

A schedule is a detailed plan that outlines specific activities or tasks along with their intended start and finish times, designed to achieve an objective.

Gross Profit Method

An inventory estimation technique that calculates inventory value by applying gross profit margins to sales.