This quiz works best with JavaScript enabled. Home > Accounting > Cost Accounting > Break Even Analysis > Break Even Point – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Break Even Point Quiz 11 (13 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Businesses calculate break-even in pounds so they know the A) Amount of the business after tax-earnings. B) Total pounds value of the stock on hand. C) Total pounds sales needed to reach break-even. D) Amount the business can spend on new purchases. Show Answer Correct Answer: C) Total pounds sales needed to reach break-even. 2. What is the formula for contribution? A) Cost price-selling price. B) Fixed costs-variable costs. C) Selling price-variable cost. D) Selling price-cost price. Show Answer Correct Answer: C) Selling price-variable cost. 3. Costs that do not vary with output (in the short run) A) Average cost. B) Fixed costs. C) Variable cost. D) Total cost. Show Answer Correct Answer: B) Fixed costs. 4. The difference between current output and break-even level of output A) Margin of safety. B) Contribution per unit. C) Purchasing economy of scale. D) Diseconomies of scale. Show Answer Correct Answer: A) Margin of safety. 5. Frederick is revising his formulae for a test on break-even. He has mixed up his revision notes. What is the formulas for Break-even A) Total revenue-total cost. B) Fixed cost + variable cost. C) Actual output-break-even point. D) Total revenue = total cost. Show Answer Correct Answer: D) Total revenue = total cost. 6. According to the following data (Selling Price= $ 450, Variable Cost= $ 150, Fixed Cost= $ 53.000) Calculate the breakeven ***3 minutes to answer*** A) 176.66. B) 176.67. C) 167.66. D) 167.76. Show Answer Correct Answer: A) 176.66. 7. Brian and Amy invest $ 2700 to start a hair cutting business. Each hair cut costs them $ 1.50 (supplies). They charge their customer $ 15 for each cut.How much profit will they make if they sell 344 haircuts? A) $ 1, 944. B) $ 1940. C) $ 340. D) 340 hair cuts. Show Answer Correct Answer: A) $ 1, 944. 8. The best definition of fixed costs are those that do not vary with: A) Time. B) Seasons. C) Output. D) Number of workers. Show Answer Correct Answer: C) Output. 9. The formula to calculate revenue is: A) REVENUE = FIXED COSTS + VARIABLE COSTS. B) REVENUE = VARIABLE COSTS * PRICE. C) REVENUE = UNITS SOLD * PRICE. D) REVENUE = UNITS SOLD * TOTAL COSTS. Show Answer Correct Answer: C) REVENUE = UNITS SOLD * PRICE. 10. Which of the following is an example of a fixed cost for a cafe? A) Managers' salaries. B) Workers' wages. C) Coffee. D) Cakes. Show Answer Correct Answer: A) Managers' salaries. 11. Total contribution =? A) Total sales less total variable costs. B) Total sales less fixed costs. C) Variable costs less fixed costs. D) Total selling price less fixed costs. Show Answer Correct Answer: A) Total sales less total variable costs. 12. Which one of the following variables is often not shown on a break even diagram? A) Total revenue. B) Total costs. C) Total variable costs. D) Total fixed costs. Show Answer Correct Answer: C) Total variable costs. 13. At a local concert hall, the owner charges $ 7 per ticket. The owner must pay his band $ 1200. Every customer receives a brochure that costs the owner $ 2 for each person.How many people must attend for him to breakeven? A) 240 people. B) 170 people. C) 600 people. D) 133 people. Show Answer Correct Answer: A) 240 people. ← PreviousRelated QuizzesCost Accounting QuizzesAccounting QuizzesBreak Even Point Quiz 1Break Even Point Quiz 2Break Even Point Quiz 3Break Even Point Quiz 4Break Even Point Quiz 5Break Even Point Quiz 6Break Even Point Quiz 7Break Even Point Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books