B.COM ECO-1 (Break Even Analysis)




Question 31 :
Break-even analysis compares total revenue with :

  1. Total profit
  2. Total cost
  3. Average cost
  4. Price
  

Question 32 :
Break-even analysis is used to determine how much quantity of its product it must sale to :

  1. Make profit
  2. Break-even
  3. Maximise profit
  4. None of the above
  

Question 33 :
Break-even point of a chart indicates :

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

Question 34 :
Assuming, QB = Break-even quantity, TFC = total cost, P = price and AVC = average variable cost, algebraically, break-even analysis formula is given as :

  1. QB = TFC/(P + AVC)
  2. QB = TFC/CP – AVC)
  3. QB = TFC/P
  4. QB = P/(TFC – AVC)
  

Question 35 :
Break-even analysis is also referred to as :

  1. Cost-volume-profit analysis
  2. Managerial decision technique
  3. Profit maximizing device
  4. None of the above
  

Question 36 :
______ is known as no profit no loss point

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

Question 37 :
Safety Margin is the difference between ______

  1. TR and TC
  2. TR and TFC
  3. AC and MC
  4. sales and BEP
  

Question 38 :
The difference between the actual sales and BEP is term as ______.

  1. Safety margin
  2. profit margin
  3. loss margin
  4. none of the above
  

Question 39 :
When total revenue is less than total cost (TR < TC) the firm incur ______.

  1. profit
  2. loss
  3. No profit no loss
  4. none of the above
  

Question 40 :
The break-even point is influenced by ______.

  1. price
  2. average variable cost
  3. fixed cost
  4. all of the above
  
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