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| Q. |
The 'break-even' point is where |
| A. | marginal revenue equals marginal cost |
| B. | average revenue equals average cost, |
| C. | total revenue equals total cost |
| D. | None of the above |
| Answer» C. total revenue equals total cost | |
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Explanation: Break-even is the point of balance between making either a profit or a loss. In economics & business, specifically cost accounting, the break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even". A profit or a loss has not been made, although opportunity costs have been "paid", and capital has received the risk- adjusted, expected return. |
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