Which Factor Is a Non-Quantitative Factor of Valuing a Business

question 14

Multiple Choice

Which factor is a non-quantitative factor of valuing a business?

• A)Future community development
• B)Size of the buildings
• C)Number of employees who will stay with the company
• D)Employee salaries

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Definitions:

Absorption Costing

A method of accounting for costs in which all costs of manufacturing a product, including fixed and variable overheads, are absorbed by the products produced.

Fixed Overhead

Regular, ongoing costs incurred by a business that do not vary with production levels, such as rent, salaries, and insurance.

Period Cost

A financial term referring to costs that are not directly tied to the production process and are expensed in the period in which they are incurred.

Sales Revenues

The revenue a company earns from selling products or offering services.