​Jackie Has Been Working for a Local Small Business Called

question 93

Multiple Choice

​Jackie has been working for a local small business called Personal Wellness for the last three years.It is a retail business that sells sporting goods equipment.When she started to work there,she noticed several things that were possibly the cause of the business not doing as well as it hoped.Jackie has been thinking of starting her own small business because she feels she has learned much through working for Personal Wellness.
​Jackie's manager asked her to create a business plan for Personal Wellness.The manager hoped that this plan would put things into perspective to help the company do better.After creating the plan,Jackie suggested that Personal Wellness contact a group of senior and graduate students to provide management counseling for the company.Jackie wants to make sure that her leaving does not become the cause of the company going under.
-Refer to Personal Wellness.What is not one of the key reasons Personal Wellness would possibly fail?

• A) Capital
• B) Employees
• C) Management
• D) Money
• E) Planning

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Definitions:

Direct Labor-Hours

The total hours worked by employees who are directly involved in the manufacturing process or production of goods.

Manufacturing Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor.

Underapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead cost is less than the actual overhead incurred.

Manufacturing Overhead Account

An account that accumulates all indirect costs associated with the production process, excluding direct materials and direct labor costs.