Which of the Following Statements Is True About Small Businesses

question 41

Multiple Choice

Which of the following statements is true about small businesses?

• A) They constitute 2 percent of all businesses in the United States.
• B) The vast majority of small firms are owner-operated.
• C) Small businesses are least likely to lay off workers during economic downswings.
• D) Small businesses hire at a slower rate than large companies.
• E) Most small businesses in the United States have more than 500 employees.

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Definitions:

Unit Product Cost

The total cost associated with producing one unit of product, calculated by dividing total production costs by the number of units produced.

Predetermined Overhead Rate

A rate used to allocate estimated overhead costs to individual products or job orders based on a pre-selected cost driver.

Manufacturing Overhead

All indirect costs associated with the production process, including utilities, rent for the production facility, and salaries for indirect labor.

Departmental Overhead Rates

Specific overhead rates allocated to individual departments within a company, reflecting the distinct costs associated with operating each department.