COST ACCOUNTING
BREAK EVEN POINT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Where a business is neither making a profit nor a loss.
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How much profit they are making.
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How many items to make.
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Where a buiness has more fixed costs than variable costs.
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Detailed explanation-1: -The break-even point (BEP) in economics, business-and specifically cost accounting-is the point at which total cost and total revenue are equal, i.e. “even". There is no net loss or gain, and one has “broken even", though opportunity costs have been paid and capital has received the risk-adjusted, expected return.
Detailed explanation-2: -The breakeven point is that point where total revenue equals total costs or expenses. The point represents the level of sales where the business makes neither a profit nor a loss.
Detailed explanation-3: -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.
Detailed explanation-4: -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).
Detailed explanation-5: -Your break-even point is equal to your fixed costs, divided by your average selling price, minus variable costs. It is the point at which revenue is equal to costs and anything beyond that makes the business profitable.