A Carefully Constructed Guide for the Person Starting a Business

question 111

Multiple Choice

A carefully constructed guide for the person starting a business is a(n)

• A) business plan.
• B) marketing plan.
• C) organisational plan.
• D) articles of business.
• E) business budget.

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Definitions:

Total Job Cost

The complete cost of a particular job, project, or order, including all direct and indirect costs such as materials, labor, and overhead.

Predetermined Overhead Rate

A predetermined overhead rate is calculated by dividing estimated manufacturing overhead costs by an allocation base, used to assign overhead costs to products.

Fixed Manufacturing Overhead

Indirect manufacturing costs that do not vary with the level of production, such as salaries of managers and depreciation of factory equipment.

Variable Manufacturing Overhead

Costs associated with manufacturing that vary directly with the levels of production output, such as raw materials and labor.