The accounting break-even level of sales represents the point where:
A) fixed costs are covered.
B) variable costs are covered.
C) fixed costs and variable costs are covered.
D)fixed costs, variable costs, and depreciation are covered.

Question

Quizplus · Accepted Answer

The accounting break-even level of sales is the point where total revenues equal total expenses, including both fixed and variable costs as well as depreciation. This means all costs are covered, but the company does not make a profit or loss.

The Accounting Break-Even Level of Sales Represents the Point Where