What Is the Key Difference Between a Family Council and a Board

question 80

Multiple Choice

What is the key difference between a family council and a board of directors?

• A)The board is focused on business-family relationships.
• B)The board includes significant family membership.
• C)The function of the family council is to keep the family involved.
• D)Family councils should get professional advice at the start.

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Definitions:

Predetermined Overhead Rate

This rate is calculated before a period begins and is used to apply overhead costs to products based on a selected activity base.

Job-Order Costing

A cost accounting system used to allocate costs to specific jobs or batches, useful for unique or custom orders.

Machine-Hours

A measure of production time, referring to the total hours a machine is operated within a specific period.

Predetermined Overhead Rate

An estimated charge per unit of activity used to allocate manufacturing overhead costs to products.