Which of the Following Reasons for Buying a Business Is

question 9

Multiple Choice

Which of the following reasons for buying a business is also a reason for purchasing a franchise?

• A)Reduction of uncertainty
• B)Acquiring goodwill
• C)Bargain price
• D)Quick start

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Definitions:

Work in Process

Goods that are in various stages of completion in the manufacturing process but are not yet finished products.

Direct Labor Variances

The differences between the actual labor costs incurred and the standard labor costs for the actual production achieved.

Direct Labor Costs

The wages paid to employees who are directly involved in the production of goods or services, such as assembly line workers or craftsmen.

Standard Costs

Predetermined or estimated costs to perform an operation or produce a good, used as benchmarks against actual costs.