Suppose That Diane Plans to Open a New, Deluxe Hamburger

question 116

Multiple Choice

Suppose that Diane plans to open a new, deluxe hamburger bar near your college. Her business plan most likely would not include

• A) the nature and mission of her new business.
• B) an explanation of why the new business is a good idea.
• C) a detailed discussion of her goals.
• D) an actual sample of the product.
• E) an analysis of costs.

---

Definitions:

COGS

COGS, or Cost of Goods Sold, represents the direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Payables Turnover Rate

An efficiency ratio that measures how quickly a company pays off its suppliers, calculated as cost of goods sold divided by average accounts payable.

Accounts Payable Balance

The total amount of short-term liabilities or obligations a company owes to its creditors or suppliers.

Sales

The total revenue generated from goods or services sold by a company during a specific period.