The Breakeven Point Is the Point at Which

question 97

Multiple Choice

The breakeven point is the point at which:

• A) revenue from sales equals the variable cost of the product.
• B) the supply curve intersects the demand curve.
• C) total revenue from sales equals total cost.
• D) marginal cost runs above the marginal revenue curve.

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Definitions:

Equipment Costing

The process of determining the total cost associated with acquiring, operating, maintaining, and disposing of equipment.

Operating Activities Section

Part of the cash flow statement that shows cash inflows and outflows related to the primary, day-to-day operations of the business.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life.

Noncash Item

Transactions or items that appear on an income statement or in financial statements but do not affect cash flow, such as depreciation and amortization.