Break Even Quizz

What is the break-even point?

• The point where total cost equals total revenue
• The point where total cost is greater than total revenue
• The point where total cost is lesser than total revenue
• The point where total revenue equals total profit

What is the break-even analysis?

• An analysis of the costs and revenues of a business
• An analysis of the fixed and variable costs of a business
• An analysis of the costs and profits of a business
• An analysis of the cash flows of a business

What is cash flow?

• The amount of money in the bank
• The total amount of profit made by a business
• The total amount of money spent by a business
• The total amount of money exchanged within a business

What is the purpose of cash flow analysis?

• To identify potential sources of income
• To identify potential areas of expenditure
• To identify potential sources of funding
• To identify potential sources of profits

What is the difference between cash flow and break-even analysis?

• Cash flow analysis is used to determine profits whereas break-even analysis is used to determine costs
• Cash flow analysis is used to determine costs whereas break-even analysis is used to determine profits
• Cash flow analysis is used to determine revenues whereas break-even analysis is used to determine costs
• Cash flow analysis is used to determine revenues whereas break-even analysis is used to determine profits

What is the difference between fixed costs and variable costs?

• Fixed costs remain the same over time whereas variable costs change over time
• Fixed costs change over time whereas variable costs remain the same over time
• Fixed costs are dependant on sales whereas variable costs are not
• Fixed costs are not dependant on sales whereas variable costs are

How is the break-even point calculated?

• By dividing the total fixed costs by total variable costs
• By dividing the total fixed costs by total variable revenues
• By dividing the total variable costs by total fixed costs
• By dividing the total variable revenues by total fixed costs

What is the formula for calculating the break-even point?

• Fixed Costs / Total Sales
• Fixed Costs / Total Revenues
• Variable Costs / Total Revenues
• Variable Revenues / Total Costs

What is the purpose of a break-even analysis?

• To identify potential areas of expenditure
• To identify potential sources of funding
• To identify the minimum level of sales needed to break-even
• To identify potential sources of income

What is the purpose of cash flow analysis?

• To identify potential areas of expenditure
• To identify potential sources of income
• To identify potential sources of funding
• To identify potential sources of profits