break even analysis

Question 1

method of determining when
value of one alternative becomes equal to the value of
another.

Answer 1

Break-even analysis

Question 2

It is commonly used to determine when costs
exactly equal revenue.

Answer 2

Break-even analysis

Question 3

If the manufactured quantity is less
than the break-even quantity,

Answer 3

a loss is incurred.

Question 4

If the manufactured quantity is greater than the breakeven quantity,

Answer 4

a profit is made.

Question 5

is a graphical representation of break-
even analysis.

Answer 5

Break-even chart

Question 6

is the quantity of
production at which the income is equal to total cost.

Answer 6

break-even point

Question 7

it is
the intersection of the income line and the total cost line on
the break-even chart.

Answer 7

break-even point

Question 8

When two alternatives are to be
compared, the _______ is the intersection of the
total cost line for each alternative on the break-even chart.

Answer 8

break-even point