Answered: Q7. a) Explain the difference between…

Q7. a) Explain the difference between full-absorption costing and direct costing and how does absorption costing help an entrepreneur make better decision?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 6Q: In The Trouble with Outsourcing, a Schumpeter column in The Economist, there is a statement of...

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Question

Q7.
a) Explain the difference between full-absorption costing and direct costing and how does absorption costing help an entrepreneur make better decision?
b) “A start-up entrepreneurship does not need to develop a business plan when launching a new enterprise. All he/she need is a business idea and money to start operating.” Evaluate this statement supporting your answer with facts

d) What options does an entrepreneur have if he or she becomes unhappy with the growth of the company?

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