For Prospective Entrepreneurs, Enrolling in an Introduction to Business or Small

question 68

Multiple Choice

For prospective entrepreneurs, enrolling in an introduction to business or small business management course offered through their community college

• A) is likely to be wasted time since college courses tend to be too theoretical.
• B) can be helpful by offering them an opportunity to meet experienced small business owners.
• C) serves as supplementary information, only after starting their business venture.
• D) seldom provides you with information to help make small business decisions.

Calculate the cost of goods manufactured and sold, including after the allocation of underapplied or overapplied manufacturing overhead.

Understand the calculation and interpretation of the cost of goods manufactured.

Understand the process for adjusting the cost of goods sold on the income statement.

Comprehend the allocation of underapplied or overapplied manufacturing overhead to inventory accounts and the cost of goods sold.

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Definitions:

Ultimatum Games

A type of game in experimental economics where two players interact to decide how to divide a sum of money; one proposes the split, and the other accepts or rejects it.

Endowment Effect

A psychological phenomenon in which people assign higher value to things merely because they own them.

Loss Aversion

In prospect theory, the property of most people’s preferences that the pain generated by losses feels substantially more intense than the pleasure generated by gains.