The Proprietorship Form of Business Organization

question 72

Multiple Choice

The proprietorship form of business organization

• A)must have at least two owners in most states.
• B)generally receives favorable tax treatment relative to a corporation.
• C)combines the records of the business with the personal records of the owner.
• D)is classified as a separate legal entity.

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Definitions:

Standard Labour Cost

The predetermined cost assigned to labor based on expected productivity rates and wage rates.

Direct Labour

The labor costs associated directly with the manufacture of goods, including the wages of workers who are actively involved in the production process.

Standard Cost

The predetermined cost of manufacturing a single unit or a number of product units during a specific period, used for budgeting and performance evaluation.

Budget

A financial plan that estimates income and expenditure for a specific period of time.