Vaughn Hager Started His One-Man Consulting Business Under the Name

question 9

Multiple Choice

Vaughn Hager started his one-man consulting business under the name Hager Associates. The legal structure for the company can best be described as a(n) :

• A) proprietorship.
• B) partnership.
• C) trade alliance.
• D) corporation.
• E) one man operation.

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Definitions:

Period Costs

Expenses that are not directly tied to the production process and are expensed in the financial period they are incurred.

Salespersons' Commissions

Payments made to sales staff that are typically based on a percentage of the sales they generate.

Product Cost

The total amount spent to produce a product, including raw materials, labor, and overhead costs directly tied to the production process.

Period Cost

Period cost refers to any cost that is not directly tied to the production of goods and is expensed in the period it is incurred.