The Hamptons Enjoy Owning and Operating Their Own Restaurant

question 145

Multiple Choice

The Hamptons enjoy owning and operating their own restaurant. They enjoy being the masters of their own destinies and closing down the restaurant for one week a year so that they can take a vacation. The Hamptons seem to enjoy which advantage of a small business?

• A) Limited potential
• B) Personal relationships with customers
• C) Independence
• D) Personal relationships with employees
• E) Ability to adapt to change

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Definitions:

Manufacturing Overhead

Indirect factory-related costs that are incurred when producing a product, such as utilities, maintenance, and quality control.

Indirect Materials

Materials used in the production process that cannot be directly linked to a specific product, such as lubricants and cleaning supplies used in a factory.

FIFO Method

An inventory valuation method where the first items placed in inventory are the first ones sold or used out; FIFO stands for “First In, First Out”.

Work In Process

This term is often used interchangeably with Work In Progress, denoting goods that are partially completed in the manufacturing process.