The two types of cost used to determine the breakeven point are __________ and __________.
A) minimum cost; maximum cost
B) direct cost; indirect cost
C) fixed cost; variable cost
D) hard cost; soft cost

Question

Quizplus · Accepted Answer

The two types of cost used to determine the breakeven point are fixed cost and variable cost. Fixed costs are expenses that do not change regardless of the level of production, such as rent or salaries. Variable costs, on the other hand, vary with the level of production, such as the cost of raw materials or hourly wages for production workers. By analyzing the fixed and variable costs, a company can determine how many units of their product they need to sell in order to cover all costs and break even.

The Two Types of Cost Used to Determine the Breakeven