On the Breakeven Graph,the Point at Which the Total Sales

question 7

Multiple Choice

On the breakeven graph,the point at which the total sales revenue line and the total cost line intersect is called

• A)Contribution margin.
• B)Breakeven point.
• C)Net income.
• D)Operating income.

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Definitions:

Segment Information

Financial data that has been broken down into smaller parts, such as divisions or subsidiaries of a corporation, to analyze performance of different areas of the company separately.

Reportable Segment

A distinguishable component of a business for which separate financial information is available and regularly reviewed by the entity’s decision makers.

Operating Profits

Income earned from a firm's core business operations, excluding deductions of interest and taxes.

IFRS 8

Refers to the International Financial Reporting Standard dealing with operating segments, requiring particular ways of financial reporting by segment to enhance transparency and comparability.