Peter Kumar Has Developed a Software Application That Will Reduce

question 61

Multiple Choice

Peter Kumar has developed a software application that will reduce costs and increase server speed for corporations of all sizes.Even with this useful application,Peter still needs to develop personal selling skills in order to:

• A)understand and write a business plan for his company
• B)explain his application to others who can buy it
• C)apply for a patent on his application
• D)maintain the discipline and stamina required to develop such a complicated piece of software
• E)ensure that only corporate users buy his application

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Definitions:

Relevant Range

The range of activity within which the assumptions about fixed and variable cost behaviors remain valid for a specific business.

Fixed Overhead Cost

Fixed expenditures unaffected by changes in production or sales volume, like leasing fees, employee compensation, and protection plans.

Maintenance Cost

Maintenance cost refers to the expenses incurred for the upkeep and repair of equipment, buildings, or machinery to keep them in good working condition.

Fixed Cost

A cost that remains constant, regardless of changes in the level of production or sales activities.