B.COM ECO-1 (Break Even Analysis)




Question 1 :
Break-even analysis compares total ______ and total cost, graphically and algebraically.

  1. Revenue
  2. average variable cost
  3. Average cost
  4. None of the above
  

Question 2 :
Break-even analysis at break-even point indicates ______ profit

  1. Zero
  2. Heavy loss
  3. Large profit
  4. All of the above
  

Question 3 :
A break-even analysis is essentially a typical case of required profit analysis where the required profit is ______.

  1. Zero
  2. Large profit
  3. Heavy loss
  4. All of the above
  

Question 4 :
The break-even quantity point will decrease, when price ______.

  1. decreases
  2. Increases
  3. constant
  4. None of the above
  

Question 5 :
______ is the point where total revenue is equal to total cost.

  1. point of origin
  2. Break-even point
  3. Marginal point
  4. None of the above
  

Question 6 :
The ______ graphically depicts the profit-output relationship

  1. Marginal point
  2. Break-even chart
  3. point of origin
  4. All of the above
  

Question 7 :
When TR > TC, it indicates ______ zone of a firm

  1. Loss
  2. Profit
  3. All of the above
  

Question 8 :
Break-even point of a chart indicates ______.

  1. Large profit
  2. Heavy loss
  3. Zero profit
  4. All of the above
  

Question 9 :
Break-even analysis compare total revenue with ______.

  1. Total cost
  2. Average cost
  3. marginal cost
  4. None of the above
  

Question 10 :
Break-even analysis is also referred to as ______.

  1. Cost-volume-profit analysis
  2. None of the above
  

Question 11 :
______ refers to the extent to which the firm can permit a decline in sales before it starts incurring losses.

  1. safety margin
  2. None of the above
  

Question 12 :
BEA help the firm to determine ______ for a given level of output.

  1. Maximum cost
  2. Average cost
  3. None of the above
  4. minimum cost
  

Question 13 :
BEA at break-even point indicate ______ profit.

  1. Heavy loss
  2. Large profit
  3. None of the above
  4. zero
  

Question 14 :
The Break-even analysis is meant to put a break on the production.

  1. TRUE
  2. FALSE
  

Question 15 :
The BEA provides an understanding of the functional relationship among cost, revenue and output rate.

  1. TRUE
  2. FALSE
  

Question 16 :
The BEA provides an important link between business behavior in practice and economic theory.

  1. TRUE
  2. FALSE
  

Question 17 :
The BEA relate to the long-term relationship.

  1. TRUE
  2. FALSE
  

Question 18 :
The BEA is useful to the Prime Minister of collusion government.

  1. TRUE
  2. FALSE
  

Question 19 :
At break-even point, the company makes loss.

  1. TRUE
  2. FALSE
  

Question 20 :
The break-even-chart graphically shows cost and revenue relation.

  1. TRUE
  2. FALSE
  

Question 21 :
In Linear Break-even analysis, total fixed cost is a vertical straight line parallel to

  1. TRUE
  2. FALSE
  

Question 22 :
Y-axis.

  1. TRUE
  2. FALSE
  

Question 23 :
When TC > TR it indicate profit zone.

  1. TRUE
  2. FALSE
  

Question 24 :
BEA helps in determining the optimum level of output.

  1. TRUE
  2. FALSE
  

Question 25 :
Total cost curve starts from above the origin.

  1. TRUE
  2. FALSE
  

Question 26 :
The total revenue curve starts from the origin.

  1. TRUE
  2. FALSE
  

Question 27 :
At break-even point TR > TC.

  1. TRUE
  2. FALSE
  

Question 28 :
Break-even analysis has great importance to managerial economists.

  1. TRUE
  2. FALSE
  

Question 29 :
The profit zone in a break-even chart shows TR = TC.

  1. TRUE
  2. FALSE
  

Question 30 :
There are no limitations to BEA.

  1. TRUE
  2. FALSE
  
Pages