Lucia Owns Her Own Dog Walking Business and Has Several

question 3

Multiple Choice

Lucia owns her own dog walking business and has several employees. She filed no legal paperwork and has no partners. Lucia's business is a ________.

• A)limited liability company
• B)corporation
• C)sole proprietorship
• D)separate legal entity

Understand the objectives and approaches of aggregate planning.

Recognize the role of aggregate planning in managing costs, inventory, and production levels.

Identify and differentiate between various aggregate planning strategies including the chase strategy, level scheduling, and mixed strategies.

Knowledge about the application of linear programming and other mathematical models in aggregate planning.

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Definitions:

Net Operating Income

A measure of a company's profitability, calculated by subtracting operating expenses from gross profit.

Variable Costing

A costing method that includes only variable production costs (material, labor, and overhead) in the cost of manufactured goods, treating fixed overhead costs as period expenses.

Unit Product Cost

The total cost to produce one unit of product, including direct materials, labor, and allocated overhead.

Net Operating Income

The profit calculated after all operating expenses are subtracted from total revenue but before interest and taxes are deducted.