If a company does not receive the utility bill, it need not record the expense.

True

False

31. The amount by which a companys sales can decline before losses are incurred is called the:

a. Contribution margin

b. Degree of operating leverage

c. Margin of safety

d. Break-even point

38. Sales Price per unit = 6, Variable cost = 2. Fixed cost = 12,000. What is the breakeven point in units?

2,000

6,000

3,000

Cannot be determined

57. The 3 major components of COSTS are material, labour and contribution.

True

False