At What Stage of Starting and Running Your Business Should

question 3

Multiple Choice

At what stage of starting and running your business should you inform investors of your exit strategy?

• A) In the business plan
• B) In your first annual report
• C) Shortly before selling
• D) Midway through your planned number of years in business
• E) Never

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Definitions:

Materials Price Variance

The difference between the actual cost of materials and the expected (standard) cost.

Labor Rate Variance

A measure used in cost accounting to analyze the difference between the actual labor cost incurred and the standard labor cost for the actual labor hours worked.

Variable Overhead Efficiency Variance

Refers to the difference between the standard cost of variable overheads for the actual production level and the actual variable overheads incurred.

Labor Rate Variance

The difference between the actual cost of labor and the budgeted cost, indicating how well a company has controlled its labor costs.