Paterno Routinely Bids on Contracts Even Though Most of the Other

question 87

Multiple Choice

Paterno routinely bids on contracts even though most of the other bidders are extremely large firms. Paterno believes his company offers better service at lower prices. He is exhibiting which personality trait common in entrepreneurs?

• A) creativity
• B) tolerance for failure
• C) high energy level
• D) self-confidence

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Definitions:

Variable Cost

Costs that vary directly with the level of production output or volume, such as raw materials and direct labor.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours worked, multiplied by the standard labor rate.

Standard Hours

A measure used in accounting to indicate the expected amount of time required to complete a task or project.

Actual Hours

The total time spent on a specific task or job by workers, typically measured in hours.