Asked by Keiona Wedderburn on Jun 11, 2024
Verified
The sales level that results in a project's net income exactly equal to zero is called:
A) Operational break-even.
B) Leveraged break-even.
C) Accounting break-even.
D) Cash break-even.
E) Financial break-even.
Accounting Break-even
The point at which total revenues exactly equal total explicit costs, leading to neither a profit nor a loss.
Project
A planned set of interrelated tasks to be executed over a fixed period and within certain cost and other limitations, aiming to achieve a specific goal.
- Compute different types of breakeven points such as cash, financial, and accounting breakeven points.
Verified Answer
JP
Joseph PulitanoJun 11, 2024
Final Answer :
C
Explanation :
The accounting break-even point is the sales level at which a project's net income is exactly zero. This means that the company has covered all its operating costs and depreciation, but has not made a profit beyond that.
Learning Objectives
- Compute different types of breakeven points such as cash, financial, and accounting breakeven points.