The Benefit or Advantage of Having an Established Business and Secured

question 371

Multiple Choice

The benefit or advantage of having an established business and secured customers is:

• A) trade dress
• B) trade secret
• C) goodwill
• D) brand name
• E) none of the other choices

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Definitions:

Cost-Plus Pricing

A method where the sale price is calculated by adding a particular markup on top of the product's cost per unit.

Variable Manufacturing Cost

Costs that vary directly with the level of production output, including direct materials and direct labor expenses.

Mark-Up Percentage

The percent difference between the cost of a good or service and its selling price, used to calculate the selling price from the cost.

Contribution Margins

The amount remaining from sales revenue after variable expenses are deducted, indicating how much contributes to covering fixed costs and generating profit.