The Vertical Axes on a Break-Even Chart and a Profit-Volume

question 64

Multiple Choice

The vertical axes on a break-even chart and a profit-volume chart respectively are:

• A)profit: sales revenue and costs.
• B)volume of output: volume of output.
• C)sales revenue and costs: profit.
• D)fixed costs: sales revenue.

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Definitions:

Time for Delivery

The specific period within which goods or services must be delivered as stipulated in a contract.

Reasonable Time for Inspection

A legally acceptable period allowed for a buyer to examine goods to ensure they conform to the contract terms.

Effective Acceptance

The act of agreeing to the terms of an offer in a manner that is recognized by law, thereby creating a binding contract.

Conforming Goods

Products that meet the specifications and quality standards outlined in a purchase contract.