This quiz works best with JavaScript enabled. Home > Finance > Accounting > Cost Accounting > Break Even Analysis > Break Even Point – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Break Even Point Quiz 2 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. At a local ballpark a team charges $ 10 per ticket. The team must pay its players $ 4000. It costs the owners $ 6 for each souvenir they give away.How many tickets must be sold to break even. A) 1000 tickets. B) 600 tickets. C) 660 tickets. D) 10, 000 tickets. Show Answer Correct Answer: A) 1000 tickets. 2. At a local ballpark a team charges $ 10 per ticket. The team must pay its players $ 4000. It costs the owners $ 6 for each souvenir they give away.How much profit will they make if they sell 2, 230 tickets? (income-cost = profit) A) $ 2, 920. B) $ 2, 230. C) $ 4, 920. D) $ 1, 000. Show Answer Correct Answer: C) $ 4, 920. 3. What is the break-even output formula? A) Fixed costs / Selling price per unit. B) Fixed costs / Variable costs per unit. C) Fixed costs / Contribution per unit. D) Contribution per unit/ / Fixed costs. Show Answer Correct Answer: C) Fixed costs / Contribution per unit. 4. Businesses calculate break-even in dollars so they know the A) Amount of the business's after tax-earnings. B) Total dollar value of the stock on hand. C) Total dollar sales needed to reach break-even. D) Amount the business can spend on new purchases. Show Answer Correct Answer: C) Total dollar sales needed to reach break-even. 5. The break even level of output for a firm is 800 units and it is currently making 950 units. What is its margin of safety? A) 300 units. B) 1750 units. C) 250 units. D) 150 units. Show Answer Correct Answer: D) 150 units. 6. Margin of safety is? A) Actual sales-break-even sales. B) Actual sales-Fixed costs. C) Fixed costs-selling price. D) Actual sales + break-even sales. Show Answer Correct Answer: A) Actual sales-break-even sales. 7. If the average variable costs £ 10, average selling price is £ 25 and fixed costs are £ 60, 000, then what is the break-even output? A) 7000. B) 6000. C) 4000. D) 5000. Show Answer Correct Answer: C) 4000. 8. How do you calculate the opening balance? A) Total receipts-Total Payments. B) Net cash flow-closing balance. C) Net Cash flow + closing balance. D) Closing balance from the previous month. Show Answer Correct Answer: D) Closing balance from the previous month. 9. What is one limitation to calculating break even? A) Based on multiple products. B) Based on estimates. C) Helps projected sales. D) Considers stock wastage. Show Answer Correct Answer: B) Based on estimates. 10. According to Punxutawney Phil, spring is ..... A) At least 6 weeks away. B) Just around the corner. C) Followed by fall. D) A state of mind. Show Answer Correct Answer: B) Just around the corner. 11. Business experiences a ..... when the cost price is greater than the selling price. A) Break-even. B) Profit. C) Markdown. D) Loss. Show Answer Correct Answer: D) Loss. 12. What is the break-even point in units for a company whose total fixed costs are £ 275, 450; selling price per unit is £ 16; and variable cost per unit is £ 14.75? A) 220, 360. B) 150, 300. C) 183, 633. D) 225, 120. Show Answer Correct Answer: A) 220, 360. 13. Businesses calculate break-even in peso amounts so they know the A) Amount of the business's after tax-earnings. B) Total peso value of the stock on hand. C) Total peso sales needed to reach break-even. D) Amount the business can spend on new purchases. Show Answer Correct Answer: C) Total peso sales needed to reach break-even. 14. What is meant by "total contribution" ? A) Quantity / Contribution per unit. B) Contribution per unit x quantity. C) Quantity-Contribution per unit. D) Contribution per unit / quantity. Show Answer Correct Answer: B) Contribution per unit x quantity. 15. Which of the following is NOT an economy of scale? A) Purchasing economies. B) Communication economies. C) Marketing economies. D) Technical economies. Show Answer Correct Answer: B) Communication economies. 16. At a dinner theatre the owner charges $ 25 per ticket. She pays her employees $ 18, 500. Each customer leaves with a free dessert that cost the owner $ 5 per dessert. When will the owner break even? A) 925 customers. B) 3700 customers. C) 18500 customers. D) 740 customers. Show Answer Correct Answer: A) 925 customers. 17. If a business's sales double, its variable costs will also likely A) Decrease. B) Increase. C) Double. D) Remain the same. Show Answer Correct Answer: B) Increase. 18. What is incurred in the creation of the product? A) Variable Cost. B) Fixed Cost. C) Cost Price. D) Selling Price. Show Answer Correct Answer: A) Variable Cost. 19. Which one is NOT included in the break-even formula? A) Total fixed costs. B) Selling price per unit. C) Variable costs per unit. D) Cost price per unit. Show Answer Correct Answer: D) Cost price per unit. 20. Select the example of a fixed cost from the list below A) Machine fuel. B) Wages of piece rate staff. C) Raw materials. D) Staff salaries. Show Answer Correct Answer: D) Staff salaries. 21. On a break even chart, which line starts at zero? A) Total Costs. B) Variable Costs. C) Fixed Costs. D) Total Revenue. Show Answer Correct Answer: D) Total Revenue. 22. Which one of the following is the correct formula to calculate a firm's variable cost per unit? A) Total costs / output. B) Output / total variable costs. C) Output / total costs. D) Total variable costs / output. Show Answer Correct Answer: D) Total variable costs / output. 23. If the landlord increases a firm's rent then this cost is A) Progressive. B) Regressive. C) Fixed. D) Variable. Show Answer Correct Answer: C) Fixed. 24. 'Business costs are not the only factor which determines the success of a business'. A) TRUE. B) FALSE. C) BOTH. D) NOT SURE. Show Answer Correct Answer: A) TRUE. 25. If maximum output is 10 000 units, current output is 8 000 units and break-even output is 4 500 units, then the safety margin is: A) 3 500 units. B) 4 500 units. C) 5 500 units. D) 2 000 units. Show Answer Correct Answer: A) 3 500 units. 26. What is the break-even output if the amount charged to customers is £ 60, the cost of making each item is £ 25 and fixed costs are £ 700, 000? A) £ 2, 000. B) £ 20, 000. C) 2, 000. D) 20, 000. Show Answer Correct Answer: D) 20, 000. 27. What appears on the x axis on a Break Even Chart? A) Output/Number of units. B) Total Costs. C) Sales Revenue. D) Revenue. Show Answer Correct Answer: A) Output/Number of units. 28. Break even is when ..... A) Total revenue is equal to variables costs. B) Total revenue is equal to profit. C) Total revenue is equal to margin of safety. D) Total revenue is equal to total costs. Show Answer Correct Answer: D) Total revenue is equal to total costs. 29. To draw the BE graph you must plot Total Costs, fixed costs and ..... A) Total contribution. B) Total Production. C) Total Revenue. D) Total Units. Show Answer Correct Answer: C) Total Revenue. 30. What is the formula for Revenue? A) Income stream. B) Fixed costs + Variable costs. C) Price x Quantity sold. D) Costs x Quantity. Show Answer Correct Answer: C) Price x Quantity sold. ← PreviousNext →Related QuizzesCost Accounting QuizzesAccounting QuizzesBreak Even Point Quiz 1Break Even Point Quiz 3Break Even Point Quiz 4Break Even Point Quiz 5Break Even Point Quiz 6Break Even Point Quiz 7 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books