For Each Unit Produced Under the Licensing Contract, the Hong

question 93

Multiple Choice

For each unit produced under the licensing contract, the Hong Kong baker will pay a small fee called ________________ to Vetkoek-Vetkoek .

• A)trademark fees.
• B)royalties.
• C)general licensing fees.
• D)copyright fees.

---

Definitions:

Responsibility Centre

A management accounting tool in which parts of an organization are allocated responsibility for controlling costs, revenues, or investments.

Control Purposes

Activities or measures implemented to ensure that operations are conducted as planned and resources are used efficiently.

Direct Material

Direct Material refers to the raw materials that are directly incorporated into a finished product and are a significant part of manufacturing costs.

Cost Per Equivalent Unit

A method used in process costing that calculates the cost assigned to goods based on the stage of completion.