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Home Appendix-II Appendix-II -Paper-1 Break-Even Point 📘 Topic 1: Break-Even Point (BEP) – 100 MCQs

📘 Topic 1: Break-Even Point (BEP) – 100 MCQs

 

📘 Topic 1: Break-Even Point (BEP) – 100 MCQs


  1. Break-even point is where:
    A. Profit is maximum
    B. Loss is minimum
    C. Total cost = Total revenue
    D. Fixed cost = Variable cost
    Answer: C
  2. At BEP, contribution is equal to:
    A. Profit
    B. Fixed cost
    C. Variable cost
    D. Sales
    Answer: B
  3. Contribution is defined as:
    A. Sales – Fixed cost
    B. Sales – Variable cost
    C. Fixed cost – Variable cost
    D. Sales – Profit
    Answer: B
  4. BEP in units =
    A. Fixed cost / Contribution per unit
    B. Variable cost / Sales
    C. Sales / Profit
    D. Fixed cost / Sales
    Answer: A
  5. P/V ratio is:
    A. Profit/Variable cost
    B. Contribution/Sales
    C. Fixed cost/Sales
    D. Sales/Profit
    Answer: B
  6. BEP occurs when profit is:
    A. Positive
    B. Negative
    C. Zero
    D. Maximum
    Answer: C
  7. If fixed cost increases, BEP:
    A. Decreases
    B. Increases
    C. Remains same
    D. Zero
    Answer: B
  8. If selling price increases, BEP:
    A. Increases
    B. Decreases
    C. Same
    D. Zero
    Answer: B
  9. Contribution per unit =
    A. SP – VC
    B. SP – FC
    C. VC – FC
    D. SP – Profit
    Answer: A
  10. Margin of safety =
    A. Total sales – BE sales
    B. BE sales – total sales
    C. Profit – loss
    D. Sales – cost
    Answer: A


  1. Fixed cost ₹50,000, contribution/unit ₹10 → BEP units =
    A. 5,000
    B. 4,000
    C. 6,000
    D. 10,000
    Answer: A
  2. SP ₹50, VC ₹30 → contribution =
    A. 20
    B. 30
    C. 50
    D. 10
    Answer: A
  3. P/V ratio = 40%, sales ₹1,00,000 → contribution =
    A. 40,000
    B. 60,000
    C. 20,000
    D. 80,000
    Answer: A
  4. BE sales = ₹50,000, actual sales ₹80,000 → margin of safety =
    A. 30,000
    B. 50,000
    C. 80,000
    D. 20,000
    Answer: A
  5. Fixed cost ₹40,000, P/V ratio 25% → BE sales =
    A. 1,60,000
    B. 1,00,000
    C. 80,000
    D. 40,000
    Answer: A
  6. If VC increases, contribution:
    A. Increases
    B. Decreases
    C. Same
    D. Zero
    Answer: B
  7. If SP decreases, BEP:
    A. Decreases
    B. Increases
    C. Same
    D. Zero
    Answer: B
  8. Margin of safety indicates:
    A. Risk level
    B. Profit
    C. Cost
    D. Sales
    Answer: A
  9. High margin of safety means:
    A. High risk
    B. Low risk
    C. No risk
    D. Loss
    Answer: B
  10. BEP is expressed in:
    A. Units
    B. Value
    C. Both
    D. None
    Answer: C


  1. In Railways, BEP helps in:
    A. Pricing
    B. Cost control
    C. Decision making
    D. All
    Answer: D
  2. BEP assumes:
    A. Linear cost behavior
    B. Non-linear
    C. Random
    D. None
    Answer: A
  3. BEP assumes:
    A. Constant SP
    B. Constant VC
    C. Both
    D. None
    Answer: C
  4. Multi-product BEP uses:
    A. Weighted average
    B. Simple average
    C. Median
    D. None
    Answer: A
  5. BEP chart shows:
    A. Cost line
    B. Revenue line
    C. Intersection
    D. All
    Answer: D
  6. Angle of incidence shows:
    A. Profitability
    B. Cost
    C. Sales
    D. Risk
    Answer: A
  7. Larger angle =
    A. Higher profit
    B. Lower profit
    C. No effect
    D. Loss
    Answer: A
  8. BEP ignores:
    A. Time value
    B. Cost
    C. Sales
    D. Profit
    Answer: A
  9. BEP is useful for:
    A. Short-term decisions
    B. Long-term
    C. Both
    D. None
    Answer: A
  10. BEP analysis is also called:
    A. CVP analysis
    B. Ratio analysis
    C. Trend analysis
    D. None
    Answer: A
  11. Contribution is first used to cover:
    A. Profit
    B. Fixed cost
    C. Variable cost
    D. Sales
    Answer: B
  12. After BEP, contribution becomes:
    A. Profit
    B. Loss
    C. Cost
    D. None
    Answer: A
  13. BEP is lowest when:
    A. Contribution high
    B. Contribution low
    C. Fixed cost high
    D. VC high
    Answer: A
  14. BEP increases when:
    A. Fixed cost increases
    B. SP increases
    C. VC decreases
    D. Contribution increases
    Answer: A
  15. BEP is point of:
    A. No profit no loss
    B. Maximum profit
    C. Loss
    D. Cost
    Answer: A
  16. BEP assumes:
    A. Single product
    B. Multiple products
    C. Both
    D. None
    Answer: A
  17. BEP is affected by:
    A. SP
    B. VC
    C. FC
    D. All
    Answer: D
  18. Contribution ratio is same as:
    A. P/V ratio
    B. Profit ratio
    C. Cost ratio
    D. None
    Answer: A
  19. BEP analysis helps in:
    A. Planning
    B. Control
    C. Decision making
    D. All
    Answer: D
  20. BEP is essential for:
    A. Cost control
    B. Profit planning
    C. Pricing
    D. All
    Answer: D
  21. BEP ignores:
    A. Inventory changes
    B. Cost
    C. Sales
    D. Profit
    Answer: A
  22. BEP assumes:
    A. No stock change
    B. Stock change
    C. Random
    D. None
    Answer: A
  23. BEP is graphical in:
    A. BE chart
    B. Histogram
    C. Pie chart
    D. None
    Answer: A
  24. BEP helps in:
    A. Budgeting
    B. Forecasting
    C. Control
    D. All
    Answer: D
  25. BEP is used for:
    A. Short-term planning
    B. Long-term
    C. Both
    D. None
    Answer: A
  26. BEP is important in Railways for:
    A. Project viability
    B. Cost recovery
    C. Pricing
    D. All
    Answer: D
  27. BEP depends on:
    A. Cost structure
    B. Sales
    C. Both
    D. None
    Answer: C
  28. BEP is:
    A. Analytical tool
    B. Accounting record
    C. Ledger
    D. None
    Answer: A
  29. BEP is useful for:
    A. Decision making
    B. Cost control
    C. Profit planning
    D. All
    Answer: D
  30. BEP indicates:
    A. Minimum sales
    B. Maximum sales
    C. Profit
    D. Cost
    Answer: A
  31. BEP is affected by:
    A. Cost behavior
    B. Price
    C. Both
    D. None
    Answer: C
  32. BEP is:
    A. Static
    B. Dynamic
    C. Random
    D. None
    Answer: A
  33. BEP assumes:
    A. Constant cost
    B. Variable cost
    C. Both
    D. None
    Answer: C
  34. BEP is important for:
    A. Financial planning
    B. Control
    C. Decision
    D. All
    Answer: D
  35. BEP shows relationship between:
    A. Cost & revenue
    B. Profit & loss
    C. Asset & liability
    D. None
    Answer: A
  36. BEP is:
    A. Cost-volume-profit tool
    B. Ratio
    C. Ledger
    D. None
    Answer: A
  37. BEP helps in:
    A. Risk analysis
    B. Profit planning
    C. Both
    D. None
    Answer: C
  38. BEP indicates:
    A. Safety level
    B. Risk level
    C. Profit
    D. None
    Answer: B
  39. BEP is minimum level of:
    A. Sales
    B. Cost
    C. Profit
    D. None
    Answer: A
  40. BEP is essential for:
    A. Managerial decisions
    B. Cost control
    C. Planning
    D. All
    Answer: D
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