BCOM-Business Economics MCQ

Question 351 : There are no limitations to BEA.

1. true
2. false

Question 352 : Break-even analysis compares total revenue with :

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

Question 353 : 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 354 : Break-even point of a chart indicates :

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

Question 355 : 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 356 : 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 357 : ______ 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 358 : Safety Margin is the difference between ______

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

Question 359 : 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 360 : 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 361 : The break-even point is influenced by ______.

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