When Describing the Product in the Business Plan,the Entrepreneur Should

question 14

Multiple Choice

When describing the product in the business plan,the entrepreneur should

• A)use technical terms.
• B)state that product will sell itself.
• C)use layman terms.
• D)assume that others will like the product.

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Definitions:

Total Contribution Margin

The difference between sales revenue and variable costs, representing the total amount available to cover fixed expenses and generate profit.

Total Variable Costs

The sum of all costs that vary directly with the level of production or service provision, such as materials and labor.

Total Sales Revenue

The total amount of income generated by the sale of goods or services before any costs or expenses are deducted.

Cost Object

A cost object is any item for which a separate measurement of costs is desired, including products, services, projects, or activities.