The More Resources an Industry Requires,the Harder It Is to Start

question 58

True/False

The more resources an industry requires,the harder it is to start a business and the less likely that the industry is dominated by small firms.

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Definitions:

Fixed Manufacturing Overhead

Costs associated with manufacturing that do not vary with the level of production, such as salaries of supervisors and rent for factory premises.

Standard Costing System

An accounting methodology that assigns fixed costs to products, aiding in performance management and budgeting by comparing actual to standard costs.

Budgeted

Relates to the financial plan that estimates future revenue and expenses over a specific time period.

Denominator Level

In cost accounting, it refers to the total amount of allocation base (e.g., direct labor hours, machine hours) that is used to calculate the predetermined overhead rate.