What Are Small Businesses Characterized By, in Contrast to Large

question 39

Multiple Choice

What are small businesses characterized by, in contrast to large businesses?

• A) niche-finding strategies
• B) a decreasing percentage of employees in the economy as a whole
• C) fewer numbers, as merger mania continues to create a larger proportion of large firms in the world economy
• D) the front/back combinations that combine small units into larger ones

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Definitions:

Product Cost

The total cost associated with producing goods, including raw materials, labor, and overhead costs.

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.

Fixed Manufacturing Overhead

Costs that do not change with the level of production output and are essential for the manufacturing process, such as rent, property taxes, and salaries of permanent staff.

Unit Product Cost

The cost associated with producing a single unit of output, including direct materials, direct labor, and allocated overhead costs.