Matthew Decides to Open a Cafe in His Neighborhood,called Coffee

question 42

Multiple Choice

Matthew decides to open a cafe in his neighborhood,called Coffee Beans.While analyzing the start-up options,he decides against buying an existing independent business,or even buying into a franchise system.Because of a recent reduction in the availability of loans to entrepreneurs,he is unable to get a bank loan.He is likely to have which of the following benefits?

• A) He will have an established brand recognition.
• B) Since business processes and systems are usually in place, he need not create them.
• C) Support networks are already in place, so he need not update them.
• D) He need not hire and train the workforce at his own expense.
• E) He will experience very high freedom and flexibility.

Calculate total overhead costs at different levels of activity.

Determine predetermined fixed overhead rates.

Define overhead application and its significance on product cost.

Analyze factors causing variances in variable and fixed overheads.

---

Definitions:

Format Painter

A tool in many software applications that lets users copy formatting from one item to another.

Shape Effects Tool

A feature in graphic design and presentation software that allows users to apply special visual effects to shapes, such as shadows, glows, and bevels.

Form Layout View

A feature in database and form-building software that allows users to visually design and arrange the interface through which data is entered and displayed.

Form Layout View

A feature in database applications that allows users to design or modify the layout of forms used for data entry or display.