The Four Types of Business Models That Bring the Hospitality

question 17

Multiple Choice

The four types of business models that bring the hospitality product to the customer include:

• A) A franchisee
• B) A franchisor
• C) Both A & B
• D) Neither A nor B

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Definitions:

Period Costs

Expenses directly tied to non-manufacturing activities such as selling, administration, and general business operations, recognized in the income statement when incurred.

General Costs

General costs are indirect expenses related to the overall operations of a company that cannot be directly tied to a specific product or service, such as rent, utilities, and administrative salaries.

Indirect Materials

Materials used in the production process that do not directly become part of the finished product.

Manufacturing

The procedure of changing basic materials, components, or elements into end products that align with a customer’s needs or criteria.