ECONOMICS

COST ACCOUNTING

COST VOLUME PROFIT ANALYSIS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Below are the method for computing a break even point EXCEPT;
A
Mathematical equation
B
Contribution margin method
C
Graphical method
D
Net profit method
Explanation: 

Detailed explanation-1: -The basic formula for break-even analysis is derived by dividing the total fixed costs of production by the contribution per unit (price per unit less the variable costs).

Detailed explanation-2: -A company’s breakeven point is the point at which its sales exactly cover its expenses. Fixed Costs ÷ (Price-Variable Costs) = Breakeven Point in Units.

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