Under Which Organizational Structure Would the Death of the Owner

question 7

Multiple Choice

Under which organizational structure would the death of the owner have no legal effect?

• A) a partnership
• B) a corporation
• C) a sole proprietorship
• D) all of the above

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Definitions:

Predetermined Fixed Manufacturing Overhead Rate

A rate used to allocate fixed manufacturing overhead to products based on a predetermined activity level.

Fixed Manufacturing Overhead Budget Variance

The difference between the actual fixed manufacturing overhead costs and the budgeted fixed overhead costs.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred during production and the standard cost of variable overhead allocated for the actual production volume.

Fixed Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs, attributed to the variance in the volume of production.