Since It Replaces Existing Products and Methods of Production,entrepreneurship Is

question 98

Multiple Choice

Since it replaces existing products and methods of production,entrepreneurship is a process of

• A)harnessing the human potential.
• B)creative destruction.
• C)creation of opportunity.
• D)exploitation of innovation.

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Definitions:

Absorption Costing

A method of accounting for all the costs associated with manufacturing a product, including all direct costs and fixed and variable overhead expenses.

Variable Costing

An accounting approach where only variable manufacturing costs are included in product costs, excluding fixed manufacturing overhead.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Absorption Costing

An accounting method that includes all manufacturing costs, both fixed and variable, in the cost of a product.