An Inherent Problem for Couples Involved in a Family Business

question 70

Multiple Choice

An inherent problem for couples involved in a family business is that

• A)conflicts in the business tend to carry over into family life.
• B)hours of work may become longer for one person.
• C)uneven division of labor,i.e. ,one person is only responsible for the menial tasks.
• D)some husbands find their masculinity threatened when their wives are better managers.

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Definitions:

Plantwide Predetermined Manufacturing Overhead Rate

A single overhead rate calculated using the total estimated overhead costs for a factory divided by the estimated amount of base activity, applied uniformly across all products.

Markup

Markup refers to the amount added to the cost price of goods to cover overhead and profit when determining the selling price.

Selling Prices

The amount a product is sold for, which can be influenced by market demand, cost of production, and competitive pricing.

Departmental Predetermined Overhead Rates

Rates used to allocate overhead costs to products more accurately by setting individual rates for different departments.