Mini-Case Peppy Roaney Believes That Pizza Is a Much More Versatile

question 188

Multiple Choice

Mini-Case
Peppy Roaney believes that pizza is a much more versatile dish than most people realize. As the national marketing manager for Pizza Guys, he observed how consumers were delighted with barbecue pizza, Hawaiian pizza, Mexican pizza and other unique combinations. His suggestions for other unusual pizzas, however, were met with a negative response by his superiors. Even some of his colleagues laughed at his ideas. Peppy's confidence in his ability to understand the market has led him to focus on planning a business of his own. Peppy realizes that he will take a risk when he leaves his job with Pizza Guys and embarks upon a new venture: Peppy's Pizzazzeria. Peppy is excited about the potential of profitably catering to the unmet desires of pizza consumers.
-Peppy has inquired about the possibility of obtaining a microloan from the SBA. This type of loan is awarded primarily on the basis of the:

• A) borrower's integrity and the soundness of the business idea.
• B) amount of collateral the borrower can pledge.
• C) borrower's credit history and record of previous business success.
• D) age of the borrower, since only senior citizens qualify.

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Definitions:

Activity-Based Costing

A costing approach that estimates the expense of products or services by determining the activities needed for their production, thus offering a more precise understanding of costs.

Product S

A specific item or model produced by a company for sale.

Activity-Based Costing

An accounting method that assigns costs to products and services based on the activities they require, offering more precise cost information.

Product Y1

Similar to Product G1, this term likely represents a specific product or model identified as "Y1" by a particular company or industry.