Break Even Terms

Question 1

Variable cost

Answer 1

Varies with level of output

Question 2

Semi variable cost

Answer 2

Part of the cost stays the same (fixed) and part will vary with level of output or degree of usage

Question 3

Fixed cost

Answer 3

Cost remain same regardless of output

Question 4

Sales in value

Answer 4

Monetary value calculated as total revenue

Question 5

Sales in volume

Answer 5

Sales expressed as quantity sold eg units

Question 6

Margin of safety

Answer 6

Actual number of units sold over and above the break even point