Daniel Is Planning to Start a Mobile Food Business to Cater

question 18

Multiple Choice

Daniel is planning to start a mobile food business to cater to office workers. After conducting a small survey, he finds out that consumers prefer quick but healthy food options. He adjusts his menu to incorporate quick and healthy food alternatives. The busy professionals are Daniel's _____ for his new restaurant.

• A) capital market
• B) target market
• C) warm market
• D) close range market

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Definitions:

Conversion Cost

Conversion cost is the combination of labor and manufacturing overhead costs incurred to convert raw materials into finished goods.

Equivalent Unit

A concept used in process costing that converts partially completed units into a number of fully completed units.

Factory Overhead

encompasses all the indirect costs associated with manufacturing, excluding direct labor and direct materials, such as utilities, depreciation, and maintenance.

Work In Process Inventory

Goods that are in various stages of the production process but are not yet completed products.