To Break Even, a Business Must ________

question 29

Multiple Choice

To break even, a business must ________.

• A) sell enough units to cover all its costs
• B) sell enough units to cover its fixed costs
• C) sell enough units to earn a profit
• D) sell enough units to cover variable costs

Recognize the conditions under which goodwill can be recorded.

Calculate and understand the concept of depletion and its application to natural resources.

Comprehend the treatment of costs associated with defending intangible assets.

Understand historical patterns and consequences of urbanization and suburbanization in the U.S.

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Definitions:

Return On Equity (ROE)

A financial ratio indicating the profitability of a firm relative to its equity capital.

Liabilities

Financial obligations or debts that a company owes to others, which need to be settled over time.

Assets

Economic resources owned or controlled by an entity, expected to produce value or benefit in the future.

Cycle Inventory

Inventory that is carried as a result of the production or purchase process, determined by the frequency of orders and the quantity of goods ordered each time.