The accounting break-even level of revenues represents the point at which the project 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 represents the point at which the project has generated enough revenue to cover all of its expenses, including fixed and variable costs, but has not yet generated a profit. Therefore, the pretax profit at this point would be zero.

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