The accounting break-even level of revenues represents the point at which the firm has:
A) zero pretax profit.
B) zero net present value.
C) covered all opportunity costs.
D)covered the fixed and variable costs but not the depreciation.

Question

Quizplus · Accepted Answer

The accounting break-even level of revenues refers to the level of sales at which the company generates zero profit before tax. This means that the firm has covered all of its costs, both fixed and variable, but has not generated any profit. In other words, it has reached the point where it has just broken even.

The Accounting Break-Even Level of Revenues Represents the Point at Which