Asked by Carly Koncz on May 09, 2024
Verified
The data required for determining the break-even point for a business are the total estimated fixed costs for a period stated as a percentage of sales.
Estimated Fixed Costs
Predicted expenses that do not fluctuate with the level of production or sales over a certain period of time.
Break-even Point
The point at which total costs and total revenue are equal, meaning that there are no net losses or gains.
Sales
The total revenue generated from the sale of goods or services related to a company's primary operations.
- Master the notion of the break-even point and its responsiveness to alterations in costs and sales.
- Assess the correlations between cost, volume, and profit in their utilization across manufacturing and service industries.
Verified Answer
NF
Natalie FincherMay 14, 2024
Final Answer :
False
Explanation :
The data required for determining the break-even point for a business are the total estimated fixed costs for a period, the variable costs per unit, and the selling price per unit, not fixed costs as a percentage of sales.
Learning Objectives
- Master the notion of the break-even point and its responsiveness to alterations in costs and sales.
- Assess the correlations between cost, volume, and profit in their utilization across manufacturing and service industries.
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