The break-even point cannot be determined by
A) computing it from a mathematical equation.
B) computing it using contribution margin.
C) reading the prior year's financial statements.
D) deriving it from a CVP graph.

Question

Quizplus · Accepted Answer

The break-even point is determined by analyzing the costs and revenue of a business. It cannot be determined by reading the prior year's financial statements, which only show the past performance of the company and not its current or future financial situation. The break-even point can be determined through mathematical equations, contribution margin, or CVP (cost-volume-profit) graphs.

The Break-Even Point Cannot Be Determined by