Question 1

Break-even analysis is the process used to determine the profitability of a product at various levels of sales.

Accepted Answer

This statement is true. Break-even analysis helps businesses determine how many units of a product they need to sell in order to cover all of their costs and break even. It is also used to explore the potential profitability of a product at different sales levels.

Question 2

to incur losses in the short run with the goal of raising prices later.

Accepted Answer

The answer of to incur losses in the short run...

Question 3

At the break-even point total revenue is equal to total cost.

Accepted Answer

At the break-even point, a company is not making a profit or a loss as total revenue earned from sales is equal to total cost incurred to produce those goods or services. Therefore, the statement "At the break-even point total revenue is equal to total cost" is true.

Question 4

to cut costs wherever possible.

Accepted Answer

Cutting costs is a common business practice to increase profits and efficiency.

Question 5

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

Accepted Answer

The correct term for the level of sales revenue or volume required to cover all costs is the "break-even point," not the "full contribution point."

Question 6

At the break-even point profits are maximized.

Accepted Answer

At the break-even point, profits are zero, so they cannot be maximized.

Question 7

Cost-based pricing is the process used to determine the profitability of a product at various levels of sales.

Accepted Answer

Cost-based pricing is a pricing strategy where the selling price is determined by adding a specific markup to a product's cost, not by analyzing profitability at different sales levels.

Question 8

Competition-based pricing is the process used to determine the profitability of a product at various levels of sales.

Accepted Answer

Competition-based pricing is the process of setting prices based on what competitors are charging for similar products or services. It does not necessarily determine the profitability of a product at various levels of sales. Instead, it focuses on positioning the product's price in relation to competitors.

Question 9

is called the break-even point.

Accepted Answer

The break-even point is the point at which a company's revenue equals its total costs, resulting in neither profit nor loss.

Question 10

The point where the revenue, from the sales of the products (units) offered to the marketplace, equals the total costs (variable costs + fixed costs) associated with producing these products (units) is contribution margin.

Accepted Answer

The point where revenue equals total costs is called the break-even point, not the contribution margin. The contribution margin is the difference between sales revenue and variable costs.

Question 11

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.

Accepted Answer

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.

Question 12

The point where the revenue, from the sales of the products (units) offered to the marketplace, equals the total costs (variable costs + fixed costs) associated with producing these products (units) is balanced quantity.

Accepted Answer

The point where revenue equals total costs is known as the break-even point, not balanced quantity.

Question 13

to establish production facilities in low cost countries.

Accepted Answer

The answer of to establish production facilities in low cost...

Question 14

At the break-even point variable costs are equal to total fixed costs.

Accepted Answer

At the break-even point, total revenue equals total costs (both fixed and variable), not just variable costs equaling total fixed costs.

Question 15

to calculate the break-even point and determine the potential profit at different levels of sales.

Accepted Answer

The statement is incomplete. It starts with "to calculate the break-even point and determine the potential profit at different levels of sales" but does not provide a complete context or question.

Question 16

The level of sales revenue or volume which is required in order for the organization to cover all of its costs is called the balanced quantity.

Accepted Answer

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 17

The level of sales revenue or volume which is required in order for the organization to cover all of its costs is called the contribution margin.

Accepted Answer

The level of sales revenue or volume required to cover all costs is called the break-even point, not the contribution margin. The contribution margin is the difference between sales revenue and variable costs.

Question 18

The more the cost base is composed of fixed or indirect costs,the more effortless it is for managers to use cost reduction strategies to protect the organization's profitability in response to decreases in demand for products and services.

Accepted Answer

Fixed or indirect costs do not change with the level of production or sales, making it harder to reduce costs quickly in response to decreased demand.

Question 19

Demand-based pricing is the process used to determine the profitability of a product at various levels of sales.

Accepted Answer

Demand-based pricing is a strategy where prices are set based on consumer demand and perceived value, not on profitability analysis at different sales levels.

Question 20

The point where the revenue, from the sales of the products (units) offered to the marketplace, equals the total costs (variable costs + fixed costs) associated with producing these products (units) is equilibrium volume.

Accepted Answer

The point where revenue equals total costs is known as the break-even point, not equilibrium volume.

Quiz 12: Technology and Operations Management

Break-even analysis is the process used to determine the profitability of a product at various levels of sales.

to incur losses in the short run with the goal of raising prices later.

At the break-even point total revenue is equal to total cost.

to cut costs wherever possible.

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

At the break-even point profits are maximized.

Cost-based pricing is the process used to determine the profitability of a product at various levels of sales.

Competition-based pricing is the process used to determine the profitability of a product at various levels of sales.

is called the break-even point.

The point where the revenue, from the sales of the products (units) offered to the marketplace, equals the total costs (variable costs + fixed costs) associated with producing these products (units) is contribution margin.

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.

The point where the revenue, from the sales of the products (units) offered to the marketplace, equals the total costs (variable costs + fixed costs) associated with producing these products (units) is balanced quantity.

to establish production facilities in low cost countries.

At the break-even point variable costs are equal to total fixed costs.

to calculate the break-even point and determine the potential profit at different levels of sales.

The level of sales revenue or volume which is required in order for the organization to cover all of its costs is called the balanced quantity.

The level of sales revenue or volume which is required in order for the organization to cover all of its costs is called the contribution margin.

The more the cost base is composed of fixed or indirect costs,the more effortless it is for managers to use cost reduction strategies to protect the organization's profitability in response to decreases in demand for products and services.

Demand-based pricing is the process used to determine the profitability of a product at various levels of sales.

The point where the revenue, from the sales of the products (units) offered to the marketplace, equals the total costs (variable costs + fixed costs) associated with producing these products (units) is equilibrium volume.