Typically, You Will Have to Secure More Capital to Buy

question 47

Multiple Choice

Typically, you will have to secure more capital to buy a business than to start one up because you are paying for the ________.

• A) Established customer base
• B) Supplier relationships
• C) Skilled employees
• D) All of the above
• E) None of the above

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Definitions:

Data Collected

The process of gathering and measuring information on targeted variables to answer relevant questions and evaluate outcomes.

Direct Materials Price Variance

The difference between the actual cost of direct materials used in production and the standard cost, multiplied by the actual quantity of materials used.

Flexible Budget

A flexible budget adjusts expenses based on changes in actual revenue or other activities, allowing for more accurate budgeting and variance analysis.

Variable Costs

Expenses that vary in direct proportion to changes in activity levels or volumes, such as raw materials and direct labor costs.