At the Break-Even Point

question 130

Multiple Choice

At the break-even point,

• A) total revenue equals variable cost.
• B) total fixed cost equals variable cost.
• C) total contribution margin equals total fixed cost.
• D) total sales equals total fixed cost.
• E) total margin of safety equals variable cost.

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Definitions:

Presentation Means

The methods or techniques used to display or convey information, ideas, or data to an audience.

Finished Goods Account

An account representing the total cost of manufactured goods that are completed and ready for sale.

Fiscal Year

A 12-month cycle utilized for the purposes of financial statements and planning budgets, not necessarily coinciding with the calendar year.

Standard Variances

Differences between planned or standard costs and actual costs in budgeting and accounting, used to monitor and control operational performance.