The BEP, in Units, Can Be Found by Dividing

question 185

Multiple Choice

The BEP, in units, can be found by dividing

• A) total fixed costs by the fixed cost contribution per unit.
• B) total variable costs by the variable cost contribution per unit.
• C) total variable costs by the fixed cost contribution per unit.
• D) the assumed selling price per unit by the variable cost per unit.
• E) total variable costs by target return.

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Definitions:

Equivalent Units

A concept used in cost accounting to represent the amount of work done on incomplete units, translated into the amount of completed units.

Conversion Costs

Conversion costs are the costs incurred to convert raw materials into finished products, including direct labor and manufacturing overhead expenses.

Conversion Costs

Costs related to turning raw materials into finished goods, typically including labor and manufacturing overhead expenses.

Materials Costs

Expenses incurred in the acquisition of raw materials used in production.