The Break-Even Point Would Not Be Affected by Changes To

question 57

Multiple Choice

The break-even point would not be affected by changes to:

• A) total fixed costs.
• B) sales price per unit.
• C) variable cost per unit.
• D) number of units sold.

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Definitions:

Deferred Expenses

Costs that have been incurred but not yet expensed in the income statement because they will benefit more than one accounting period.

Initial Cash Flow

The initial movement of money for an investment or project, often an outlay, which is considered when evaluating the potential financial returns.

Liabilities

Liabilities are financial obligations a company owes to external parties, such as loans, accounts payable, and mortgages.