The sales level that results in a project's net income exactly equal to zero is called:
A) Operational break-even.
B) Leveraged break-even.
C) Accounting break-even.
D) Cash break-even.
E) Financial break-even.

Question

Quizplus · Accepted Answer

The accounting break-even point is the sales level at which a project's net income is exactly zero. This means that the company has covered all its operating costs and depreciation, but has not made a profit beyond that.

The Sales Level That Results in a Project's Net Income