Which of the Following Is True of Licensing

question 53

Multiple Choice

Which of the following is true of licensing?

• A)The core brand is partially responsible for financially supporting the company seeking the license.
• B)It involves a payment of fee to the core brand.
• C)All the benefits of a licensed product go to the core brand, and the core brand enjoys limited liability.
• D)The core brand takes on negligible risks in the licensing agreement.

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Definitions:

Direct Materials Price Variance

The difference between the actual cost of direct materials and the standard cost, multiplied by the actual quantity purchased.

Actual Costs

The real expenses incurred for goods, services, or other operational activities during a specific period of time.

Standard Costs

The practice of assigning an expected cost to products, with the aim of assessing performance by comparing these costs to actual costs.

Direct Labor Time Variance

The cost associated with the difference between the actual hours and the standard hours of direct labor spent producing a commodity multiplied by the standard direct labor rate per hour.