One Way to Protect Consumers Is Through the Licensing, for Control

question 8

Multiple Choice

One way to protect consumers is through the licensing, for control purposes, of certain types of businesses. Which of the following require licensing for the protection of consumers?

• A) restaurants
• B) collection agencies
• C) door- to- door sellers
• D) travel agencies
• E) all of the above

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Definitions:

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, improving the accuracy of product and service costing.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, such as factory rent, utilities, and salaries of indirect labor.

Activity-Based Costing

A method of costing that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption.

Batch Setup

Batch setup refers to the process and the activities involved in preparing equipment or a production area for manufacturing a specific batch of products.