How is the break-even point best defined?

Question

Quizplus · Accepted Answer

The break-even point is the level of sales at which total costs equal total revenue. This means that the company is neither earning a profit nor incurring a loss. As such, option A is the best definition of the break-even point. Option B refers to the point of production where total revenue equals total costs, which is not the same as the break-even point. Option C and D refer to specific cost categories and do not include all costs, so they are not accurate definitions of the break-even point.

How Is the Break-Even Point Best Defined