COST ACCOUNTING
COST VOLUME PROFIT ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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BEP calculation can be calculated using:(select all that apply)
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Equation approach
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Evaluation approach
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Comprehensive approach
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Contribution Margin approach
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Explanation:
Detailed explanation-1: -To calculate break-even point based on units: Divide fixed costs by the revenue per unit minus the variable cost per unit. The fixed costs are those that do not change regardless of units are sold. The revenue is the price for which you’re selling the product minus the variable costs, like labour and materials.
Detailed explanation-2: -Break Even Point Formula The formula for calculating the break-even point (BEP) involves taking the total fixed costs and dividing the amount by the contribution margin per unit.
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