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) sales are equal to the sum of fixed costs, variable costs, and depreciation.

Question

Quizplus · Accepted Answer

The accounting break-even point is where total sales equal the sum of fixed costs, variable costs, and depreciation, resulting in zero net income.

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