QUESTION 14At the break-even point,O A. total cost equals total revenueO B. output equals capacityO C. total cost equals profitO D. variable cost equals total revenueO E. variable cost equals fixed cost

Cost-Volume-Profit (CVP) analysis is a financial management tool used by businesses to understand…

Answered: QUESTION 14 At the break-even point, O…

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter20: Variable Costing For Management Analysis

Section: Chapter Questions

Problem 20.18EX

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24i. It is simple to apply.ii. It causes unit production costs to fluctuate in the opposite direction with the production volume.iii. It causes inconsistencies in period profits. Which of the following is or are the drawbacks of the full cost method?a)i and iii B)i and ii NS)only ii D)only i TO)ii and iii
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QUESTION 23 Expenses can be categorized by whether the cost incurred is directly related to production or not. If directly related, it will not change with the production level, thus called Fixed Cost. If directly related, it will change with the production level, thus called Fixed Cost. If not directly related, it will not change with the production level, thus called Variable Cost. If not directly related, it will change with the production level, thus called Variable Cost. None of the above is a correct statement.
15 A fixed cost is a cost which Group of answer choices varies inversely in total with changes in the level of activity. varies in total with changes in the level of activity. remains constant in total with changes in the level of activity. remains constant per unit with changes in the level of activity.
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QUESTION 14 At the break-even point, O A. total cost equals total revenue O B. output equals capacity O C. total cost equals profit O D. variable cost equals total revenue O E. variable cost equals fixed cost