A Company's Break-Even Point Will Not Be Changed By

question 54

Multiple Choice

A company's break-even point will not be changed by:

• A) a change in total fixed costs.
• B) a change in the number of units produced and sold.
• C) a change in the variable cost ratio.
• D) a change in the contribution margin ratio.

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Definitions:

Pool Concept

A financial strategy where funds or resources are pooled together for a common purpose, often for investment or risk management.

Capital Cost Allowance (CCA)

A tax deduction in some jurisdictions for depreciation of assets, allowing businesses to write off the cost of assets over time.

Year-end UCC

The Undepreciated Capital Cost of an asset at the end of a fiscal year, relevant in tax calculations.

Net Capital Cost

The total cost of purchasing an asset including acquisition costs but net of any deductions, rebates, or subsidies.