Which of the Following Questions Can Give a Potential Business

question 41

Multiple Choice

Which of the following questions can give a potential business owner insight on future and current demand?

• A) Does the idea solve a consumer's want or need?
• B) How much competition exists?
• C) Can the idea be turned into a profitable business?
• D) Does the business owner have the appropriate skills needed in order to be successful?

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Definitions:

Conversion Costs

The sum of direct labor and overhead costs involved in converting raw materials into finished goods.

Electricity Costs

The expenses incurred for the consumption of electricity, often classified as a variable cost in production or operations.

Product Cost

The total cost incurred to create a product, typically including direct labor, materials, and overhead expenses.

Period Cost

Costs that are expensed in the period they are incurred and are not directly tied to inventory or production, such as administrative expenses.