Question

Which of the following is known as a 'no profit-no loss' situation?

• A. Break-Even Point
• B. Initiating structure
• C. Statistical control
• D. None of the above

Answer 1

Answer: (A)

Break-Even Point

The break-even point (BEP) in economics, business—and specifically cost accounting—is the point at which total cost and total revenue are equal, i.e. "even". There is no net loss or gain, and one has "broken even", though opportunity Total profit at the break-even point is zero.