Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

Which of the following statements about the break-even point is correct?

  • AAt the break-even point a company makes a profit.
  • BContribution equals fixed costs at the break-even point.
  • CFixed costs are equal to sales revenue at the break-even point.
  • DVariable costs equal fixed costs at the break-even point.

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