The accounting break-even point for a firm is a function of its:
A) net cash flows and depreciation expense.
B) fixed costs and gross profit on each sale.
C) variable costs and tax rate.
D) revenues and fixed costs.

Question

Quizplus · Accepted Answer

The accounting break-even point is determined by fixed costs and the gross profit on each sale, as it is the point where total revenues equal total fixed and variable costs, resulting in zero net income.

The Accounting Break-Even Point for a Firm Is a Function