What is the correct meaning of break-even point?
Answer and explanation
Correct answer: जहाँ कुल आय कुल खर्च के बराबर हो
The break-even point is the level of sales at which total revenue equals total cost, including relevant fixed and variable costs. At that point the business has neither profit nor loss. Costs are not zero and customers are not absent. Sales above the break-even level may produce profit only if the assumptions and cost relationships remain valid.
Frequently asked questions
What is the correct answer to this question?
जहाँ कुल आय कुल खर्च के बराबर हो
Why is this the correct answer?
The break-even point is the level of sales at which total revenue equals total cost, including relevant fixed and variable costs. At that point the business has neither profit nor loss. Costs are not zero and customers are not absent. Sales above the break-even level may produce profit only if the assumptions and cost relationships remain valid.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Sources of Business Finance. Topic: Concept, nature and importance of business finance.
