The Breakeven Point Is

question 74

Multiple Choice

The breakeven point is

• A)where fixed and variable costs reach the upper level of the relevant range.
• B)the level of activity where all fixed costs are recovered.
• C)the level of activity where total revenue are the same as total fixed costs.
• D)the level of activity where the operating profits equal the variable costs.

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Definitions:

Semiannual

Occurring twice a year or every six months.

Effective Interest Method

An accounting method for calculating the interest income or expense on a bond or loan to reflect the actual economic rate over the financial instrument's expected life.

Interest Expense

An expense incurred from borrowing money, represented as the cost of interest for the borrowed funds.

Market Rate

The current price or interest rate at which securities, commodities, or currencies are traded in a competitive and public market.