Break-even analysis mcq
WebIn the context of operating leverage break-even analysis, if selling price per unit rises and all other variables remain constant, the operating break-even point in units will: fall. rise. stay the same. still be indeterminate until interest and preferred dividends paid are known. 6. If a firm has a DOL of 5 at Q units, this tell us that: WebJul 15, 2015 · 1. Breakeven point can be calculated in terms of units as well as in terms of amount. a) True. b) False. View Answer / Hide Answer. 2. Which of the following statements are true? a) If per unit information is given in question and no specific direction available, B.E.P should e calculated in terms of amount as well as in units. b) If technique ...
Break-even analysis mcq
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WebQuestion 1: Using break-even analysis to determine profits or losses at a given level of production and sales. Lamp Lighting produces lamps from bought in parts. The variable cost of each lamp comprises of direct materials of £6.00, labour costs of £10.00 and variable overheads of £2.00. WebA break-even analysis initial investment examination is a monetary estimation that gauges the expenses of another business, administration, or item against the unit offer cost to decide the place where you will make back the initial investment.
WebSolution (By Examveda Team) Break-even analysis is a technique widely used by production management and management accountants. . Total variable and fixed costs are compared with sales revenue in order to determine the level of sales volume, sales value or production at which the business makes neither a profit nor a loss (the "break-even point"). WebMost break-even analysis: is conducted on the basis of cash flows. is theoretical only and has little impact on the firm. excludes fixed costs. is done on the basis of accounting flows.
WebMar 9, 2024 · The break-even analysis is important to business owners and managers in determining how many units (or revenues) are needed to cover fixed and variable expenses of the business. Therefore, the … WebJul 15, 2015 · a) Differential costing. b) Marginal costing. c) Absorption costing. d) None of the above. View Answer / Hide Answer. 6. Given fixed expenses Rs 20,000 and variable expenses of 10,000 units and 15,000 units are Rs 30,000 and Rs 45,000 respectively. Determine Differential cost, Differential cost p.u. a) Rs 15,000 Rs 3.
WebAdditional Learning. In order to learn more about these economics-related principles, complete the lesson called Break-Even Analysis: Definition & Example. Use this lesson to cover these ...
Weba. marginal cost is at a minimum. b. average variable cost is at a minimum. c. average fixed cost is at a maximum. d. None of the above is correct. The long-run average cost curve is at a minimum at a level of output where. a. the firm is experiencing constant returns to scale. b. it is equal to long-run marginal cost. dutchlap spanish olive vinyl sidingWebA comprehensive guide to calculating your break-even point and applying the findings to ensure your business's profitability. in a nutshell artinyaWebThe correct answer is 'True.'. 8. Break-even point is the point where revenues equal the total of all expenses including the cost of goods sold. True. Right! If revenues minus all expenses (fixed and variable, and … dutchline poly lumberWebJul 15, 2015 · Break-even Analysis - Part 3 - MCQs with answers. 1. P/V ratio can be calculated on the basis of variable cost ratio as. 2. Determine P/V ratio if Sales is Rs 80,000 and Variable cost is Rs 60,000. 3. Determine P/V ratio if Sales is Rs 1,00,000, Fixed cost is Rs 30,000 and Profit is Rs 20,000. 4. dutchmaid clothingWebMCQs on Break Even Analysis in Finance Quiz. MCQ: The breakeven point that represents level of output at which. total revenue = 0. total revenue = total cost. total revenue > total cost. total revenue < total cost. MCQ: The main concern in analysis of firm's break-even analysis is identifying level of output which results in. zero profit. in a nutshell antsWebAfter the level of volume exceeds the break-even point A. the contribution margin ratio increases. B. the total contribution margin exceeds the total fixed costs. C. total fixed costs per unit will remain constant. D. the total … dutchmaid clothing outletWebMar 7, 2024 · Break-even analysis calculates a margin of safety where an asset price, or a firm's revenues, can fall and still stay above the break-even point. Investing Stocks in a nutshell blog