Break Even: Video Review

What is the break-even point in a business?

• When the business is just starting out

• When the business is making a loss

• When the business is not making a profit or loss

• When the business is making a profit

What is considered as profit in a business?

• Money spent on long term stuff

• Money spent on advertising

• Money spent on short term stuff

• Money earned from selling products

What is the purpose of Break Even Analysis?

• To find out how much sales are needed to break even

• To calculate the cost of long term investments

• To find out how much sales are needed to reach a certain target profit

• To calculate the cost of short term expenses

When does a business reach its break-even point?

• When it is making a loss

• When it is just starting out

• When it is not making a profit or loss

• When it is making a profit

What is the purpose of Cost Volume Profit Analysis (CVP)?

• To calculate the cost of short term expenses

• To calculate the cost of long term investments

• To find out how much sales are needed to break even

• To find out how much sales are needed to reach a certain target profit

What is the significance of the break-even point in a business?

• It indicates the point where the business starts making a profit

• It indicates the point where the business starts making a loss

• It indicates the point where the business neither makes a profit nor a loss

• It indicates the point where the business stops operating

What does Cost Volume Profit Analysis (CVP) help a business determine?

• The amount of sales needed to cover short term expenses

• The amount of sales needed to cover long term investments

• The amount of sales needed to break even

• The amount of sales needed to reach a certain target profit

What is the role of Break Even Analysis in a business?

• To determine the amount of sales needed to break even

• To calculate the cost of long term investments

• To determine the amount of sales needed to reach a certain target profit

• To calculate the cost of short term expenses