Which of the Following Is NOT an Approach Used to Calculate

question 114

Multiple Choice

Which of the following is NOT an approach used to calculate the breakeven point?

• A)The income statement approach
• B)The shortcut approach using the unit contribution margin
• C)The shortcut approach using the contribution margin ratio
• D)The balance sheet approach

---

Definitions:

General Journal

A primary accounting record used to keep track of all business transactions not recorded in specialized journals, using the double-entry accounting method.

Periodic Inventory System

An inventory system that updates inventory balances at specific intervals instead of continuously, often requiring a physical count.

General Journal

A primary accounting record where financial transactions are chronologically recorded before being posted to specific accounts in the general ledger.

Purchases Transactions

Activities related to buying goods and services for use or resale by a business.