Identify the Three Common Forms of Business Organization and the Primary

question 24

Essay

Identify the three common forms of business organization and the primary difference in the way we account for them.

Analyze and apply factory overhead costs using predetermined overhead rates.

Recognize the accounts and entries involved in completing jobs and transferring costs within manufacturing accounts.

Calculate and apply the predetermined overhead rate in manufacturing settings.

Identify different types of inventory in a manufacturing company.

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Definitions:

Recession

An appreciable fall in economic activities spread throughout the economy, continuing for longer than a few months, typically observed in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced in an economy at constant prices.

Business Quarters

Divisions of the fiscal year into four equal parts, typically three months each, used by businesses to report earnings and assess performance.

Demand-Pull Inflation

An economic condition where prices rise because the demand for goods exceeds supply.