Two Major Liabilities of Start-Ups Are

question 57

Multiple Choice

Two major liabilities of start-ups are

• A)newness and complexity.
• B)newness and smallness.
• C)oversaturation and smallness.
• D)oversaturation and inexperience.
• E)inexperience and complexity.

---

Definitions:

Job-Order Costing

An accounting method that assigns costs to specific production jobs or batches, making it possible to track the cost of each job individually.

Direct Labor Costs

Wages paid to workers directly involved in manufacturing a product or providing a service.

Cost of Goods Manufactured

The total cost incurred by a company to produce goods in a specific period, including labor, materials, and overhead.

Job-Order Costing

A cost accounting system used to accumulate costs per job or order rather than a process, suitable for customized orders.