Break-Even Analysis Quiz
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Questions and Answers

What does break-even analysis determine?

  • The total variable costs of the business
  • The number of employees needed to cover total costs
  • The amount of profit generated by the business
  • The number of units or dollars of revenue needed to cover total costs (correct)

Why is break-even analysis important to business owners and managers?

  • To analyze the macroeconomic factors affecting the industry
  • To calculate the total revenue of the business
  • To assess the market share of the business
  • To determine how many units (or revenues) are needed to cover fixed and variable expenses (correct)

What is the formula for break-even quantity in break-even analysis?

  • $Break-Even Quantity = \frac{Fixed Costs}{Selling Price - Variable Costs}$ (correct)
  • $Break-Even Quantity = \frac{Fixed Costs}{Variable Costs}$
  • $Break-Even Quantity = Fixed Costs - Variable Costs$
  • $Break-Even Quantity = Fixed Costs + Variable Costs$

What does the break-even point refer to?

<p>The point at which total costs and total revenue are equal (A)</p> Signup and view all the answers

What type of costs does break-even analysis help to cover?

<p>Fixed and variable costs (D)</p> Signup and view all the answers

બ્રેક-ઇવન એનાલિઝ શું મૂકે છે?

<p>ઉત્પાદન અને વેચાણ માટે આવકની સીમાને દર્શાવે છે (B)</p> Signup and view all the answers

બ્રેક-ઇવન પોઇન્ટ શું છે?

<p>વ્યવસાયની આવકશીલતાની સીમા (A)</p> Signup and view all the answers

બ્રેક-ઇવન એનાલિઝ વ્યવસાયને શું દર્શાવે છે?

<p>વ્યવસાયને આવકની સીમા (A)</p> Signup and view all the answers

Flashcards

What does break-even analysis determine?

The number of units or dollars of revenue needed to cover total costs.

Why is break-even analysis important to business owners and managers?

To determine how many units (or revenues) are needed to cover fixed and variable expenses.

What is the formula for break-even quantity in break-even analysis?

Break-Even Quantity = Fixed Costs / (Selling Price - Variable Costs)

What does the break-even point refer to?

The point at which total costs and total revenue are equal.

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What type of costs does break-even analysis help to cover?

Fixed and variable costs.

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What does break-even analysis show?

The break-even point indicates the limit of production and sales revenue before a business starts making a profit.

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What is the break-even point?

It signifies the point where total revenue equals total costs, representing the edge of profitability.

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What does break-even analysis show for a business?

Break-even analysis helps determine the limit of revenue a business needs to generate before it starts making a profit.

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