Pakistan's best MCQs practice hub — FPSC · PPSC · CSS · NTS · Other Exams
Login

What term refers to the sales volume level where total revenue exactly equals total costs, resulting in zero operating profit?

ABreak-Even Point
BShut-Down Point
CContribution Horizon
DMargin of Safety

Explanation

* Break-Even Point (in units) = Fixed Costs / Unit Contribution Margin.
* At the break-even point, Total Revenue = Total Variable Costs + Total Fixed Costs.
* Margin of safety measures how far actual sales can drop before incurring losses.

Exam Relevance
  • Topic: Cost Accounting
  • Subtopic: Cost-Volume-Profit (CVP) Analysis
Submitted by: mcqstutor Team More Finance & Accounting MCQs →

No Comments

Leave a comment

Your email address will not be published. Required fields are marked *