Break-even analysis is the point at which total sales revenue equals or exceeds total operating costs.

• A. False
• B. True
• C. Not Defined
• D. Cannot Be Determined

Answer: (A)

Break-even is the point where total revenue exactly covers all operating costs, leaving zero profit. The statement adds the word “exceeds,” which would imply a profit condition, not break-even. So the precise break-even condition is revenue equals total costs, not revenue that is greater than costs. If revenue is less than costs, you incur a loss; if it’s greater, you’re in profit territory, not at break-even. The other options aren’t appropriate because break-even is a clearly defined concept when you have revenue and costs.