Provide an appropriate response.
-In a profit-loss analysis, point where revenue equals cost.
A) inflection point
B) break-even point
C) turning point
D) profit-loss point

Question

Quizplus · Accepted Answer

The term used to describe the point where revenue equals cost in a profit-loss analysis is the break-even point. At this point, a company is not making a profit, but it is not incurring losses either. It is known as the break-even point because the revenue earned is enough to cover all of the costs associated with running the business. The point where revenue equals cost is called the break-even point. At this point, the company is not making a profit, but it is also not taking a loss. It is important for companies to calculate their break-even point so they can determine the minimum amount of revenue they need to generate to cover their costs.

Provide an Appropriate Response