Asked by Breanna Beaver on Jun 03, 2024
Verified
The break-even point is where total sales equal total variable costs.
Break-Even Point
The level of activity at which total revenue equals total costs.
Total Sales
Total Sales represents the aggregate revenue a company generates from selling its goods or services within a specific period before any expenses are deducted.
Variable Costs
Costs that vary directly with the level of production or volume of output.
- Understand the break-even concept, including its calculation and implications for business decision-making.
Verified Answer
KB
kenneth burnett srJun 09, 2024
Final Answer :
False
Explanation :
The break-even point is where total sales equal total costs (both fixed and variable costs), not just variable costs.
Learning Objectives
- Understand the break-even concept, including its calculation and implications for business decision-making.