Break-even analysis attempts to determine:
A) levels of transfer payments.
B) levels of grant payments.
C) the point at which total costs equal total revenues.
D) the point at which variable costs equal variable revenues.

Question

Quizplus · Accepted Answer

Break-even analysis is a financial tool that helps determine the point where total revenue is equal to total cost, which means there is no profit or loss. Therefore, the correct answer is C. The other options, such as levels of transfer payments or grant payments, are not related to break-even analysis. Also, the point where variable costs equal variable revenue is not enough for the break-even analysis because it doesn't account for fixed costs.

Break-Even Analysis Attempts to Determine