{"id":46766,"date":"2024-04-15T22:17:05","date_gmt":"2024-04-15T22:17:05","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=46766"},"modified":"2024-04-15T22:17:05","modified_gmt":"2024-04-15T22:17:05","slug":"which-of-the-following-statement-is-correct-11","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statement-is-correct-11\/","title":{"rendered":"Which of the following statement is correct?"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;BEP is the point at which the total revenue is equal to the total cost&#8221; option2=&#8221;Contribution margin = sales \u00c3\u0097 p\/v ratio&#8221; option3=&#8221;AT BEP, the firm yields neither profit nor loss&#8221; option4=&#8221;All of the above&#8221; correct=&#8221;option4&#8243;]<!--more--><\/p>\n<p>The correct answer is D. All of the above.<\/p>\n<p>Break-even point (BEP) is the point at which the total revenue is equal to the total cost. At BEP, the firm yields neither profit nor loss. The contribution margin is the difference between the sales revenue and the variable costs. It is the amount of revenue that is available to cover the fixed costs and contribute to profit.<\/p>\n<p>Here is a more detailed explanation of each option:<\/p>\n<ul>\n<li>Option A: BEP is the point at which the total revenue is equal to the total cost. This is the definition of break-even point.<\/li>\n<li>Option B: Contribution margin = sales \u00c3\u0097 p\/v ratio. The contribution margin is the difference between the sales revenue and the variable costs. It is calculated by multiplying the sales revenue by the contribution margin ratio. The contribution margin ratio is the percentage of the sales revenue that is available to cover the fixed costs and contribute to profit.<\/li>\n<li>Option C: AT BEP, the firm yields neither profit nor loss. This is because at BEP, the total revenue is equal to the total cost. Therefore, the firm has no profit or loss.<\/li>\n<\/ul>\n<p>I hope this explanation is helpful. Please let me know if you have any other questions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;BEP is the point at which the total revenue is equal to the total cost&#8221; option2=&#8221;Contribution margin = sales \u00c3\u0097 p\/v ratio&#8221; option3=&#8221;AT BEP, the firm yields neither profit nor loss&#8221; option4=&#8221;All of the above&#8221; correct=&#8221;option4&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-46766","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Which of the following statement is correct?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statement-is-correct-11\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which of the following statement is correct?\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;BEP is the point at which the total revenue is equal to the total cost&#8221; 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