If a Multi-Product Company Simply Wants to Know the Overall

question 5

True/False

If a multi-product company simply wants to know the overall break-even point and is willing to assume its product mix stays constant, it is easiest to use the break-even point in dollar sales revenue approach.

---

Definitions:

Full-Cost Pricing

A pricing strategy where the price of a product or service is determined by adding a standard markup to the total cost of producing or providing it, including both direct and indirect costs.

User-Pays Approach

The user-pays approach is a principle that suggests the costs of using natural resources or environmental services should be borne by those who use them, to encourage resource conservation.

Tax

A compulsory financial charge or other levy imposed on an individual or a legal entity by a governmental organization.

Chronic Effect

A long-term health consequence that arises after prolonged or repeated exposure to a hazardous substance or environmental condition.