An Entrepreneur Is Able to Analyze Traffic Patterns and Consumer

question 36

Multiple Choice

An entrepreneur is able to analyze traffic patterns and consumer demographics (including income, ethnicity, age) to identify the best site for her new upscale Italian restaurant. Mapping software, often called______________, allows her to easily combine demographic data with geographic information.

• A) Marketing information system
• B) Management information system
• C) Business locator software
• D) Geographic information system
• E) None of the above.

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Definitions:

Absorption Costing

A costing method where all manufacturing costs, both fixed and variable, are assigned to units of production and are absorbed by those units.

Variable Costing

An accounting method that includes only variable production costs—such as materials, labor, and overhead—in the cost of goods sold, while fixed costs are expensed in the period they are incurred.

Fixed Overhead Cost

Costs that do not vary with production volume, such as rent, salaries, and insurance, and must be paid regardless of the level of output or sales.

Ending Inventory

The value of goods available for sale at the end of an accounting period, which will be carried over as the beginning inventory for the next period.