Business Management

1: Assertion (A). Break even chart nearly depicts the relationship between sales and expenses in such a way to show at what volume revenue exactly cover expenses. Reason (R). The break even chart shows that at any lesser volume of sales the company would suffer a loss and at a great volume of sales it enjoys profits.
A.
Both (A) and (R) are true and (R) is correct explanation of A
B.
Both (A) and (R) are true but (R) is not a correct explanation of A
C.

A is true but R is false

D.

A is false but R is true

 

Answer : A

Explanation :

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Option: A

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