COST ACCOUNTING
BREAK EVEN POINT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The total costs of a business are equal to:
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the profit made
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variable costs plus added value
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quantity of units produced multiplied by average cost of producing each unit
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quantity of units sold multiplied by the selling price
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Explanation:
Detailed explanation-1: -Total costs = fixed costs + variable costs Question Calculate: The total fixed costs incurred by the sandwich shop. The total variable costs incurred by the sandwich shop.
Detailed explanation-2: -Consequently, total cost is fixed cost (FC) plus variable cost (VC), or TC = FC + VC = Kr+Lw.
Detailed explanation-3: -What is total cost? Total cost is the combined sum of fixed and variable costs. Businesses usually calculate this figure per sales unit and then multiply it by the actual number of items produced.
Detailed explanation-4: -Here is the formula broken down: Cost per unit = (Electricity + Rent + Labor + Raw materials) / Number of units.
There is 1 question to complete.