Which of the Following Relates to Expert Businesses

question 97

Multiple Choice

Which of the following relates to expert businesses?

• A)The entrepreneur does nearly everything in the simplest way possible.
• B)All the major functions of the firm follow standard business practices of the industry.
• C)The founders are passionate about one or two of the key business functions.
• D)They are satisfied if other activities are no worse than other businesses in their market.

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Definitions:

Machine Operator

A machine operator is a person who operates equipment and machinery in manufacturing or production settings, monitoring and controlling processes.

Variable Costing

An accounting method that only includes variable costs (costs that vary with production levels) in product costs and treats fixed costs as period costs expensed in the period incurred.

Manufacturing Margin

The difference between the sales revenues generated from manufactured goods and the cost of goods sold, indicating the profitability of production.

Contribution Margin

The difference between the sales revenue generated from a product or service and the variable costs associated with its production and sales.