# ECONOMICS

## COST ACCOUNTING

### BREAK EVEN POINT

 Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
What does break even point show?
 A where a business is neither making a profit or loss B how many items to make C how much profit they’re making D where a business has more fixed costs than variable
Explanation:

Detailed explanation-1: -The break-even point is the point at which total cost and total revenue are equal, meaning there is no loss or gain for your small business. In other words, you’ve reached the level of production at which the costs of production equals the revenues for a product.

Detailed explanation-2: -Break-even point This is the point where your total revenue (sales or turnover) equals total costs. At this point there is no profit or loss-in other words, you ‘break even’.

Detailed explanation-3: -The break-even point is the point at which total revenue is equal to total cost. At this point, the profit is zero. (A particular company neither makes nor loses money at this point). There are two types of costs to consider: variable and fixed.

Detailed explanation-4: -A breakeven chart is a chart that shows the sales volume level at which total costs equal sales. Losses will be incurred below this point, and profits will be earned above this point. The chart plots revenue, fixed costs, and variable costs on the vertical axis, and volume on the horizontal axis.

Detailed explanation-5: -What is a break-even point (BEP) for a business? A breakeven point is when total costs and total revenue are equal. It’s the sales level you need to reach to cover all of your costs. Your business cannot be profitable until it has reached this point.

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