At the break-even point, an operating income must be equal to ____________?
Correct answer: D. zeroTake Economics Courses
- A. $3,000
- B. $2,000
- C. $1,000
- D. zeroTake Economics Courses
Explanation
At the break-even point, total revenue equals total costs, leaving no profit or loss. Therefore, operating income is zero.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
If the contribution margin is $15000 and the units sold are 500 units, then the contribution margin per unit would be ___________?
If the contribution margin per unit is $40 per unit and selling price is $200, then the contribution margin percentage would be ____________?
If the break-even number of units are 200 units and the fixed cost is $80000, then the contribution margin per unit will be __________?
If the contribution margin per unit is $700 per unit and the break-even per unit is $40, then the fixed cost would be _____________?
The quantity of manufactured goods are sold at which the total cost equal, is known as _____________?
If the contribution margin per unit is $500 and the contribution margin percentage is 25%, then the selling price will be ____________?