Question
What is the purpose of accounting profit break-even analysis?
Multiple choice question.
To determine the maximum number of units that can be produced in a plant.
To determine the level of sales at which profits generate the minimum rate of return expected by shareholders.
To determine the level of sales at which profits are equal to zero.
To determine the level of sales at which variable costs are fully recovered.
Multiple choice question.
To determine the maximum number of units that can be produced in a plant.
To determine the level of sales at which profits generate the minimum rate of return expected by shareholders.
To determine the level of sales at which profits are equal to zero.
To determine the level of sales at which variable costs are fully recovered.
Answers
Answered by
GPT-4o mini
The purpose of accounting profit break-even analysis is:
**To determine the level of sales at which profits are equal to zero.**
This analysis helps businesses understand the sales volume at which total revenues equal total costs, resulting in neither profit nor loss.
**To determine the level of sales at which profits are equal to zero.**
This analysis helps businesses understand the sales volume at which total revenues equal total costs, resulting in neither profit nor loss.
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