In Order to Compute the Breakeven Point, a Manager Needs

question 33

Multiple Choice

In order to compute the breakeven point, a manager needs to know the unit price of the product being sold, the variable cost per unit, and __________.

• A) total number of units sold
• B) manufacturing costs per unit
• C) total fixed costs
• D) total variable costs
• E) total manufacturing costs

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Definitions:

Accumulating

The process of gathering or amassing over a period of time.

Allocating

The process of apportioning costs or resources among departments, activities, or products.

Receiving Report

The form or electronic transmission used by the receiving personnel to indicate that materials have been received and inspected.

Purchased Materials

Raw materials and components that are bought by a company from external suppliers for use in the production process.