In the Graph Below, the Area Between the Lines AC

question 151

Multiple Choice

In the graph below, the area between the lines AC and OB after point 'E' represents:

• A)fixed costs.
• B)breakeven point.
• C)operating loss.
• D)operating income.

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Definitions:

February

The second month of the year, often associated with cold weather in the Northern Hemisphere and used as a time period reference in accounting.

Materials Price Variance

The difference between the actual cost of materials and the expected (or standard) cost.

March

The third month of the year in the Gregorian calendar.

Standard Amount

A predetermined benchmark for expenses, revenues, or units produced, used for budgeting and measuring performance.