The level of sales revenue or volume which is required in order for the organization to cover all of its costs is called the break-even point.

Question

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The statement is true. The break-even point is the level of sales at which the company generates enough revenue to cover all of its costs, including fixed costs and variable costs. Below the break-even point, the company would be operating at a loss, while above the break-even point, the company would be generating a profit.

The Level of Sales Revenue or Volume Which Is Required