ECONOMICS

COST ACCOUNTING

COST VOLUME PROFIT ANALYSIS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Each of the following would affect the break-even point except a change in the
A
number of units sold
B
variable cost per unit
C
total fixed cost
D
sales price per unit
Explanation: 

Detailed explanation-1: -Answer and Explanation: The correct answer is option A. number of units sold.

Detailed explanation-2: -The correct answer is deep, A change in the number of units sold. Because the break even point is determined by total cost, revenues do not directly affect the break even point. If revenues are less than total cost, the company does not reach the break even point, which results in a loss.

Detailed explanation-3: -Because the break-even point is determined by total cost, revenues do not directly affect the break-even point. Sales revenues do, however, determine whether a company actually reaches its break-even point.

There is 1 question to complete.