When Describing Their Products and Services in Their Business Plans

question 150

True/False

When describing their products and services in their business plans, entrepreneurs must remember that customers buy the benefits from products and services, not the features.

---

Definitions:

Flexible Budget

A budget that adjusts or flexes for changes in the volume of activity, providing a more useful comparison against actual costs than a static budget.

Actual Activity

The real or factual actions or tasks completed within a period, often measured to assess performance or productivity.

Static Budget

A financial plan that does not change or adjust with variations in business activity levels.

Labor Rate Variance

The difference between the actual cost of direct labor and its expected (or standard) cost during a given period.