Four General Factors Contribute to the Failure Rate of Small

question 20

Multiple Choice

Four general factors contribute to the failure rate of small businesses.Which of the following is NOT one of those factors?

• A) Insufficient capital
• B) Managerial incompetence or inexperience
• C) Low start-up costs
• D) Weak control systems
• E) Owner neglect

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Definitions:

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities related to the production of goods or services.

Materials Handling

Activities involved in moving, storing, controlling, and protecting materials and products throughout the manufacturing, warehousing, distribution, consumption, and disposal processes.

Allocation Rate

A financial metric used to assign indirect costs to different projects or departments within an organization.

Total Overhead

The total of all indirect costs associated with the manufacturing process, including indirect labor, materials, and other expenses necessary for production.