1. Breakeven is defined as the point where sales volume in dollars and units is exactly equal to the costs incurred to generate those sales. There is no profit and no loss at this point.
True
False
2. Breakeven analysis is useful for companies that sell products, but, it is not useful for companies that provide services.
True
False
3. Variable costs do not change in total as sales volume changes
True
False
4. Fixed costs do not change in total as sales volume changes.
True
False
5. Variable costs are calculated on a _______ basis.
Per shift
Per unit
Per batch
6. Fixed costs are calculated on a ________ basis.
Daily
Weekly
Monthly
Yearly