The level of sales revenue or volume which is required in order for the organization to cover all of its costs is called the ________.
A) equilibrium volume
B) balanced quantity
C) contribution margin
D) break-even point
E) full contribution point

Question

Quizplus · Accepted Answer

The break-even point refers to the point where the sales revenue equals the total costs, resulting in zero profit or loss. It is the minimum amount of sales that a company needs to make to cover its costs. Therefore, option D is the correct answer. Option A and B are not accurate terms, while option C and E are related to the contribution margin, which is the difference between the selling price and variable cost per unit.

The Level of Sales Revenue or Volume Which Is Required