The crossover point is that production quantity where:
A) variable costs of one process equal the variable costs of another process.
B) fixed costs of a process are equal to its variable costs.
C) total costs equal total revenues for a process.
D) total costs for one process equal total costs for another process.
E) the process no longer loses money.

Question

Quizplus · Accepted Answer

The crossover point refers to the production quantity at which the total costs (including both fixed and variable costs) for one process are equal to the total costs for another process. This is a critical analysis for determining which process is more cost-effective at different levels of production.

The Crossover Point Is That Production Quantity Where