Multiple Choice Questions on The break even point is the point where ........ for SEBI Grade A ( Officer) Exam Preparation

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Multiple Choice Questions

The break even point is the point where ........

Costing - Phase (I & II) Basics of Cost Control and Analysis
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    The break-even point is the point where:  

    Total sales revenue equals total expenses (variable and fixed)  

    Incorrect Answer

    Total contribution margin equals total fixed expenses  

    Incorrect Answer

    Total sales revenue equals to variable expenses only  

    Incorrect Answer

    both a & b

    Correct Answer
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    Explanation:

    Break Even sales is volume of sales at which sales is equal to total cost

    Sales = Total cost ( subtract Variable cost from both sides)

    Sales - VC = TC - VC

    Contribution = Fixed cost

    By: Vikas Goyal
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    Chetna maini

    both A and B options are correct

    0 0 reply

    Ankur sharma

    check now, hope it would be clear

     0 0 reply

    PARAS GARG

    Here in the question is is not specified asked from point of view of marginal costing , because in general meaning of break even point is "no proft and no loss situation" so here TOTAL COST equals to Total REVENUE.

    0 0 reply

    NIHARIKA WALIA

    such a hint can be taken from the options stated that it is from the point of view of costing

     0 0 reply
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