Data Concerning Nazario Corporation's Single Product Appear Below: the Break-Even

question 68

Multiple Choice

Data concerning Nazario Corporation's single product appear below: The break-even in monthly unit sales is closest to:

• A)819
• B)2,214
• C)1,300
• D)1,444

Understand the concepts of absorption and activity-based costing (ABC).

Calculate the full cost of a product using absorption costing.

Calculate the full cost of a product using activity-based costing (ABC).

Identify and calculate the cost drivers in activity-based costing.

---

Definitions:

Fixed Costs

Costs that do not change with the level of goods or services produced in the short term.

Short Run

A period in economics where at least one factor of production is fixed, limiting the firm's ability to adjust to changes in market demand.

Variable Costing

An accounting method where variable costs are charged to cost units and fixed costs are treated as period costs.

Cost Behavior

Refers to the way different types of production costs change when there is a change in the level of production.