Assertion (A) Break-even point can be determined both mathematically as well as graphically.
Reason (R) When it is determined on a graph paper, the graph drawn is named as 'break-even chart'.
A. (A) is true, but (R) is false
B. (A) is false, but (R) is true
C. Both (A) and (R) are true and (R) is the correct explanation of (A)
D. Both (A) and (R) are true, but (R) is not the correct explanation of (A)
Answer: Option C
Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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