Potential Outcomes of Licensing Agreements Are

question 50

Multiple Choice

Potential outcomes of licensing agreements are

• A)increased profits.
• B)prolonged profitability.
• C)inflexibility.
• D)franchising.
• E)Any or all of these.

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Definitions:

Standard Quantity

The predetermined amount of materials or resources expected to be used in the production of a product.

Variable Manufacturing Overhead

Indirect production costs that fluctuate with the level of output, including utilities and supplies that vary with production volume.

Labor Rate Variance

The difference between the actual hourly labor rate and the standard rate, multiplied by the number of hours worked during the period.

Overhead Rate Variance

Overhead Rate Variance is the difference between the actual overhead costs incurred and the overhead costs allocated based on a predetermined rate.