At the accounting break-even point, ______________.
A) Net present value is positive.
B) Net income is positive.
C) The project operating cash flow is equal to depreciation expense.
D) A project's cash flow is equal to zero.
E) The price per unit and variable cost per unit are equal.

Question

Quizplus · Accepted Answer

At the accounting break-even point, the operating cash flow is equal to the depreciation expense, meaning that the project covers all its fixed and variable costs, including depreciation, but does not generate any net income.

At the Accounting Break-Even Point, ______________