When Sara Blakely Started Spanx from Scratch in Her One

question 125

Multiple Choice

When Sara Blakely started Spanx from scratch in her one bedroom apartment,she was performing the ____ role.

• A) entrepreneur
• B) leader
• C) resource allocator
• D) negotiator
• E) monitor

Distinguish between various costs associated with production, including direct materials, direct labor, and factory overhead.

Comprehend the criteria and purpose for preparing managerial accounting reports.

Understand the classification of costs as product or period costs and their impact on financial statements.

Recognize the characteristics and requirements of managerial accounting reports versus financial accounting reports.

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Definitions:

Variable Costing

A method of inventory costing that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of goods sold.

Absorption Costing

An accounting method that includes all direct costs and fixed and variable overhead costs in the cost of a product.

Net Income

The company's net income following the deduction of all expenditures and taxes from its total revenue.

Variable Selling Costs

Costs that vary directly with the volume of units sold, such as commissions and shipping expenses.