Neci and Olwen Want to Form and Do Business as a Corporation-Pastries

question 9

Multiple Choice

Neci and Olwen want to form and do business as a corporation-Pastries & Pies Inc. Its existence depends generally on

• A)city or county corporate codes.
• B)the Entrepreneur's Corporate Handbook.
• C)the federal Administrative Procedure Act.
• D)state law.

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product and are an integral part of the finished product.

Actual Price

The price at which a good or service is sold in the market, as opposed to its listed or theoretical price.

Standard Costing

An accounting method that uses standard costs for cost control and financial reporting.

Variable Manufacturing Overhead

Manufacturing overhead costs that fluctuate with the level of production activity.