When should a fixed budget be used?

Answers

Answer 1

Use a fixed budget when expenses are significant and consistent throughout time.

How does a fixed budget work?

A budget is one that is consistently unaffected by variations in sales volume, revenue, the number of units created, or output. It remains unchanged as the real output changes.

How can a fixed budget's drawbacks be fixed?

A business can do a few things to get around the drawbacks of a set budget. These include: A set budget and continuous budgeting can be combined. In this scenario, a business adds a fresh budget year as immediately as the previous one expires.

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Related Questions

Jamara has started a home party business that hosts parties and those attending paint signs. Jamara must pay $500 a year to be a representative for Paint A Sign. In addition, Jamara buys all the materials for the parties, including the metal base, the paints, brushes, stencils, and transfers. Currently, these items all add up to $10 on average. Jamara charges each participant $25 for each sign they make. For Jamara's Paint A Sign business, the $500 is a fixed cost per year. Which of the following is true?
Answers:
a. Jamara will pay the Paint A Sign company $500 regardless of the number of parties she hosts.
b. Jamara will lose money if she has less than 100 participants a year.
c. Jamara's annual fixed costs will be higher than her variable costs regardless of the number of participants.
d. Jamara will have to pay Paint A Sign $500 for every party she hosts.

Answers

Answer:

The correct answer is A. Jamara will pay the Paint A Sign company $500 regardless of the number of parties she hosts.

Explanation:

Since Jamara has started a home party business that hosts parties and those attending paint signs, and she must pay $ 500 a year to be a representative for Paint A Sign, and in addition, Jamara buys all the materials for the parties, including the metal base, the paints, brushes, stencils, and transfers, and currently, these items all add up to $ 10 on average, and Jamara charges each participant $ 25 for each sign they make, and for Jamara's Paint A Sign business, the $ 500 is a fixed cost per year, to determine which of the options is true, the following calculations must be performed:

500 = fixed costs

(100 x 25) - 10 x 100 - 500

2500 - 1000 - 500 = 1000

Therefore, since $ 500 is annual fixed costs regardless of the number of parties that are held, Option A is correct.

What is pure market economy?

Answers

Answer: A pure market economy is one that does not use state force to function as an efficient producer of goods and services

Explanation: This type of economic system was never really seen in practice before the Industrial Revolution.

Lanning to finance higher education helps people prepare for their financial future because it teaches them about loans and interest. savings accounts. filing taxes. short-term goals.

Answers

Planning to finance higher education helps people prepare for their financial future because it teaches them about funds management and loans and interest.

The oversight and management of an economic institution's cash flow is known as funds management. The fund manager will ensure that the deposit maturity schedules correspond to the loan demand. To do so, the manager examines the both obligations and the investments that affect the bank's capacity to provide credit.

Loan means the time period over which the borrower must repay the loan.  The rate that the quantity owed grows, usually expressed as an annual percent rate (APR) is known as Interest Rate. Loan Payments are defined as amount of cash that must be paid each month or week to gratify the loan terms.

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How an Economy Grows and Why It Crashes by Peter Schiff summary?

Answers

An Economy Grows and Why It Crashes by Peter Schiff is a comprehensive and entertaining guide to understanding how the economy works.

In this book, Schiff explains the basics of economics and how it relates to the stock market and the real world. He discusses the importance of investing, the role of government, money supply and inflation, and how different economic policies affect the overall economy. He also explains the importance of understanding the business cycle and how to identify the warning signs of a recession. Finally, Schiff offers practical advice on investing for the long term and how to protect yourself from economic downturns.

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The United States Bureau of Labor Statistics predicts that the manufacturing sector will account for the majority of projected job growth from


2014minus−2024.


True


False

Answers

The United States Bureau of Labor Statistics predicts that the manufacturing sector will account for the majority of projected job growth from 2014 − 2024. The above statement is false.

What is the Bureau of Labor Statistics?According to the United States Bureau of Labor Statistics, the manufacturing sector is not projected to account for the majority of job growth from 2014 to 2024.The BLS ( Bureau of Labor Statistics) projects that the healthcare and social assistance sector will account for the most job growth.Followed by professional and business services, and education and health services. Manufacturing is projected to experience some growth, but it is not expected to be the leading sector for job growth during this time period. This is due to the increasing automation and technology. It is still expected to add around 900,000 jobs in the next decade. However, it's worth noting that the projections may change due to unforeseen events, such as economic downturns or pandemics.

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X

The primary function of the Gini coefficient is to
(4 points)
measure the quality of human capital in an economy
O explain the cause of income inequality
O measure income inequality in an economy
show the efficiency of an economy
show the amount of wealth in an economy
Points

Answers

Answer:

The primary function of the Gini coefficient is to measure income inequality in an economy. It is a statistical measure that is used to represent the distribution of income or wealth among a population. A Gini coefficient of 0 indicates perfect equality, where everyone in the population has the same income or wealth. A Gini coefficient of 1 indicates perfect inequality, where one person has all the income or wealth in the population. The Gini coefficient is often used to assess the level of income inequality in a country or region and can be used to inform policy decisions related to redistributive measures such as taxes and welfare

Paprus Inc. provided the following information for its manufacturing division: Revenues $650,000 Operating expenses $400,000 Service department charges $ 95,000 Invested assets $600,000 Assume that Paprus Inc. has established 20% as the minimum acceptable return on divisional assets. Determine the residual income for the manufacturing division.

Answers

Residual income for the manufacturing division is $155,000 - $31,000 = $124,000. Residual income for the manufacturing division can be calculated by subtracting operating expenses and service department fees from revenues to obtain net operating income.

Then multiply net operating income by the division's minimum acceptable return on assets (20%) and subtract that amount from net operating income. This difference is the residual income for the manufacturing division. In this case, net operating income is $650,000 - $400,000 - $95,000 = $155,000. Multiplying net operating income by the division's minimum acceptable return on assets (20%) yields $155,000 x 0.2 = $31,000.

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Worker's compensation insurance premiums: Multiple Choice Are the same amount for all employees of a company, regardless of employee task. Are remitted in full at the end of the year to ensure accuracy. Are governed by state laws and vary according to worker job classification. Are mandated by the Fair Labor Standards Act.

Answers

Depending on the worker's compensation classification, and are governed by state law.

What does workmen's compensation insurance cover?

The Workmen's Compensation policy offers payment for monetary damages to Employees or their dependents in the event of an employee accident or injury at work (including certain occupational diseases) that results in disability or death. Employees who sustain an injury at work are compensated under the policy. This policy also includes coverage for illnesses and fatalities related to the workplace. Employers can also benefit financially from this sort of insurance since it can cover the costs of litigation when workers file claims. Even if they are citizens of another nation, employees of Indian enterprises are covered by the WC Insurance Policy. Only Indian citizens are eligible to use the ESIC Insurance Policy.

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What does fixed rate mortgage means?

Answers

A home loan option with a fixed interest rate for the duration of the loan is known as a fixed-rate mortgage.

How long is a 30-year fixed mortgage? A home loan option with a fixed interest rate for the duration of the loan is known as a fixed-rate mortgage.In essence, the mortgage's interest rate will not vary throughout the loan's term, and the borrower will continue to make equal monthly payments for interest and principal.In the event that all payments are made on time, a 30-year fixed-rate mortgage will be fully repaid in 30 years.During the entire term of a fixed-rate loan, the interest rate is fixed.A fixed-rate loan's principal benefit is that, in the event that interest rates rise, the borrower is shielded against unexpected and potentially large increases in monthly mortgage payments. Mortgages with fixed rates are simple to comprehend and have few differences across lenders.

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Dogs and Formals. Paul owns a dog grooming business and needs patient people to work there. He gives all applicants a test he obtained from a management firm that has been proven to measure psychological traits such as patience. Penny alleges sex discrimination after she fails the test miserably and Paul refuses to hire her. Paul tells her that there is no way he is giving her a dime because he is entitled to protect his client's dogs. Upon learning that her state lacked a state office representing the Equal Opportunity Commission, Penny immediately sues him in federal court alleging a violation of Title VII. Paul, who is getting tired of the dog grooming business, also opens a new formal wear shop and needs to hire employees there as well. He wants to appeal to high school and college age young ladies attending proms and formals. Paul decides that he does not want older sales clerks to assist in choosing formal dresses. He only wants young, attractive ones. Paul runs an ad in the local paper-seeking applicants for sales clerks and stating that a qualification for the job is computer training while in high school. Tina, age 60, applies and tells Paul that while she sees no reason that computer training should be required, she attended computer training in adult education and has excellent computer as well as sales skills. Paul refuses to hire her telling her that unless he follows the ad, he may be seen as practicing discrimination. Deciding that formal wear is more trouble than dogs, Paul shuts down the formal wear store. Which of the following is true involving Paul's plan to require computer training in high school in order to eliminate older workers?
A. He is not guilty of any violation without additional evidence of intent to discriminate.
B. He is not guilty of any violation unless he can establish through a survey that most people prefer younger sales clerks.
C. He is guilty of violating the Age Discrimination in Employment Act.
D. He is not guilty of any violation unless he can establish through a survey that most of the formal wear store's customers prefer younger sales clerks.
E. He is not guilty of any violation because common sense tells us that younger people make better sales clerks.

Answers

Answer: He is guilty of violating the Age Discrimination in Employment Act

Explanation:

The option that's true which involves Paul's plan requiring computer training in high school in order to eliminate older workers is that Paul is guilty of violating the Age Discrimination in Employment Act.

The Age Discrimination in Employment Act of 1967 simply protects the workers who are 40 years and above from being discriminated against due to their age during the hiring, promotion, compensation, or any other conditions of employment. In this case, Paul is guilty as he violated the Act.

Being guilty of violating the Age Discrimination in Employment Act is the true statement as regards Paul's plan to require computer training in high school in order to eliminate older workers.

Paul is guilty here because the act of The Age Discrimination in Employment Act of 1967.

was set up to serve as protection over applicants as well as employees that are over 40 years of age so they won't be discriminated.

Therefore, option C is correct.

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what did dwight eisenhower explain as the opportunity cost of the nuclear buildup due to scarcity?

Answers

The opportunity cost of the nuclear buildup due to scarcity, as explained by Dwight Eisenhower, was that resources, both financial and human, that would have been used to fund other projects or initiatives were instead diverted to the nuclear buildup.

This, in turn, limited the ability of the government to fund other programs and initiatives that may have been of economic and social benefit.

The value of the next-highest-valued alternative use of a resource is what economists mean when they talk about its "opportunity cost."

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What are the factors that affect changing business trends?

Answers

The factors that affect changing business trends are technological advancements, globalization, economic environment.

What is business?
Business
is an activity which involves the buying and selling of goods and services, or the exchange of resources for money. It involves risk taking and decision making in order to gain profit and success. Businesses can be small and large, from a single person enterprise to a large multinational corporation. It is an economic system that is essential for the functioning of a society, as it provides employment and income for individuals, and helps to generate wealth. Businesses are responsible for creating products and services that cater to the needs of consumers.

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Which of the following statements is true of the factors that affect an advertising budget?
A. Brands in less-differentiated or commodity-like product classes require very less advertising to establish a unique image
B. New products typically merit large advertising budgets to build awareness and to gain consumer trial
C. In a market with few competitors and moderate advertising spending, a brand ust advertise more heavily to be heard
D. Established brands usually are supported with high advertising budgets, measured as a ratio to sales

Answers

New merchandise typically benefit large advertising budgets to construct cognizance and to reap purchaser trial.

how does advertising work in an economy?

Modern client economies are pushed by way of the demand stirred via advertising for products. The demand contributes to monetary increase and prosperity.

What elements ought to be considered whilst putting the advertising price range Mcq?

Product life cycle and market share.

Product type and advertising agency.

Market share and buying power.

Share charge and organisation image.

Which of the elements affects advertising budget?

It relies upon on the target audience, target market, and company's marketing goals. Online media, for example, is cheaper than television advertising.

Their range is tremendously the same.

However, tv marketing may also be greater fantastic for some household products than for others.

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What is the most important factor in giving service to the client?

Answers

Having a good understanding of the product and company is important for providing excellent customer service.

What are the importance in service?Customers that receive excellent service are more likely to return and spend more money with you in the long run. That's wonderful news for your financial situation. 50% of customers boost their spending with a brand after having a satisfying experience there.The key to excellent customer service is empathy. The greatest approach to convey to your consumers that you appreciate their business, care about their difficulties, and take their worries seriously is to listen to them when they call. Customer interactions can be made memorable by fostering empathy among support workers.Understanding and being able to detect other people's emotions is called empathy. It basically involves placing yourself in the client's emotional situation. The most crucial customer service talent, according to many, is empathy.

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Read the short case on ‘two very different hotels’ in Slack et al. (2014, p. 24 - 25) and write a response to the following questions.


1. For each hotel, what is the role of technology and the role of the operation’s staff in delivering an appropriate level of service?


2. What are the main differences in the operations management challenges facing the two hotels?

Answers

Hotel 1: The role of technology in delivering an appropriate level of service for Hotel 1 is to provide efficient processes and systems that enable the hotel to run smoothly and efficiently.

Technology is used to automate many of the operations processes, such as booking and check-in, as well as providing the hotel with a secure and reliable online presence. The operation’s staff are responsible for managing the day-to-day operations of the hotel, such as housekeeping, customer service, and maintenance. They are also responsible for providing a personalized service to guests, ensuring that the hotel is providing a high level of service and meeting customer expectations.

Hotel 2: The role of technology in delivering an appropriate level of service for Hotel 2 is to provide a platform to facilitate the personalized service that the hotel is offering. Technology is used to enable the hotel staff to provide a tailored experience to each guest, such as being able to customize the menu, music, and other aspects of the guest experience. The operation’s staff are responsible for managing the day-to-day operations of the hotel, as well as providing a personalized service to each guest. They are also responsible for ensuring that all aspects of the hotel’s operations are running smoothly and efficiently.

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How will this company's Statement of Cash Flows differ from how it would appear if the company were abiding by US GAAP standards

Answers

In comparison to the firm using US GAAP, the company using IFRS will have lower cash flow in the finance portion and higher cash flow in the operations section.

Money, currencies, and capital assets are the subject of the study and practise of finance. It is a subfield of economics, which is the study of the creation, transfer, and use of money, assets, products, and services. However, the two fields are not the same. The field of finance may be loosely classified into three categories: personal, corporate, and public. Finance activities occur in financial systems at various scales. Finance is a big subject, and there are many subfields within it. Maximizing value and reducing volatility are the goals of asset, money, risk, and investment management. The feasibility, stability, and profitability of a plan of action or an entity are evaluated through financial analysis. Experimental finance examines the possibility of putting some financial ideas to the test using the scientific method.

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As an importer of clothing, would you rather have your products sold by a general merchandise retailer or a specialty store? Why?

Answers

Answer:

Specialty store

Explanation:

One advantage of heavy use of COTS software in a system is that, because these products are in commercial use, much of DT

Answers

A piece of hardware and/or software that is offered for purchase, rental, or licensing to the general public and is ready for the market.

What does COTS stand for?

Commercial-Off-the-Shelf, or COTS, is the abbreviation for software that is intended for a specific, narrowly focused sector of the market and is built to specified requirements.

a piece of hardware and/or software that is offered for purchase, rental, or licensing to the general public and is ready for the market.

The finger cot, also referred to as the finger condom, is a latex sheath that is made to fit over the tip of a finger and extend to about the base of the finger. Cuts and open wounds on fingers are frequently treated using finger-cots.

COTS. A shorthand for commercial/consumer off-the-shelf (Uses the term "ready-made goods" to refer to items that are pre-made, defined by market demand, have substantial functionality and complexity, and are self-contained.)

Software that you must install, configure, and manage yourself is often COTS software.

Therefore, the statement is false.

The complete question is:

One advantage of heavy use of COTS software in a system is that, because these products are in commercial use, much of DT&E, LFT&E, and OT&E can be waived.

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A piece of hardware or software that is ready for the market and is available for purchase, rental, or licensing to the general public.

What is the acronym COTS?

The term "commercial-off-the-shelf" (COTS) refers to software that is developed in accordance with predetermined specifications and is intended for a specific, narrowly focused segment of the market. A piece of hardware or software that is ready for the market and is available for purchase, rental, or licensing to the general public.

A latex sheath designed to fit over the tip of a finger and extend approximately to the finger's base is known as the finger cot or finger condom. Finger-cots are frequently used to treat open and cut fingers. COTS. A term used to refer to items that are pre-made, determined by market demand, have substantial functionality and complexity, and are self-contained; also known as commercial or consumer off-the-shelf.

COTS software is typically software that you have to install, configure, and manage on your own.

As a result, the assertion is incorrect.

The entire inquiry is:

A significant amount of DT&E, LFT&E, and OT&E can be avoided by making extensive use of COTS software in a system because these products are already in commercial use.

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What is advertising branding?

Answers

A brand's identity is strengthened and consumer loyalty is increased through brand advertising, which is a type of advertising intended to raise awareness for a brand, a product, or a service.

What are the 4 elements of branding?

These are the four key brand elements that you must take into consideration while creating your brand strategy. Strong brand identities, images, cultures, and personalities are necessary for a successful brand. While branding determines the tone and focus of advertising campaigns, advertising can increase brand recognition. In addition to boosting advertising efforts, marketing can control brand accountability and support a brand's reputation.

By establishing relationships with your audience, you can eventually convert them into devoted consumers. You can distinguish your company from rivals who aren't taking advantage of this by building a brand that people genuinely care about. Consistency, Clarity, and Character are the three Cs of brand messaging. Personal branding typically takes place in settings where individuals connect, whether they are prominent personalities or not, such as on social networking sites or at business gatherings.

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the reconciliation of the bank statement is a process of comparing date on a bank statement with records maintained in the medical office

Answers

Reconciliation appears to be a plan that accounts for discrepancies between the cash balance on a company's general ledger and the cash balance shown on its bank statement. Therefore, the statement is accurate.

Bank statement reconciliation:

A bank reconciliation statement is an overview of each transaction (deposits, withdrawals, fees, and interest) made on a business's bank account and how they relate to the company's financial records.

The balance of a bank account in the cash book and the final balance on the bank statement are reconciled using a bank reconciliation statement.

The process of reconciliation assures the legitimacy and correctness of financial data. A robust reconciliation procedure also guarantees that transactions have not been altered without authorization while being processed.

The practice of reconciling dates on a bank statement to information held in the medical office is called bank statement reconciliation.

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Note the above question would be as bellow,

The reconciliation of the bank statement is a process of comparing date on a bank statement with records maintained in the medical office. State true or false.

A country with imports of $6 million and other cash of $3 million coming into the country and exports of $5 million and other cash of $3 million going out of the country has a
trade surplus.
trade deficit.
positive or favorable balance of payments.
negative or unfavorable balance of payments.

Answers

Answer:

trade deficit.

Explanation:

Given that

The imports is of $6 million

And, the other cash is $3 million coming in the country

There is $5 milllon exports

And, the other cash of $3 million going out

As we know that

If the imports is more than the exports so there would be trade deficit else trade surplus

Since the imports is $6 million and the exports is $5 million

So, it is a trade deficit

which of the following is the correct word phrase of "4b+10"?
A. four added to 10
B. the product of four and B added to 10
C. the sum of 4 and B plus 10
D. the product of four and B subtracted to 10

Answers

B.

4b can be interpreted as 4 multiples by b. B is a variable in this expression. Plus 10. So it would the product of four and B added to 10.

Why is a zone of tolerance needed?

Answers

The importance of the zone of tolerance is that customers may accept variation within a range of performance and any increase in performance within this area will only have a marginal effect on perceptions

What is the need of zone of  tolerance?A "zone of tolerance" (ZOT), which identifies these two levels, depicts the gamut of IS service performance that customers would deem acceptable. In other words, rather than having a single expectation point, IS customer service expectations are defined by a spectrum of values.Customers may accept variance within a range of performance, and any improvement in performance within this range will only have a minimal impact on perceptions. This is the significance of the zone of tolerance.influencing the tolerance range. Range of tolerance is defined by four elements: time, place, situation, and culture.Respect, acceptance, and awareness of the great diversity of the cultures, modes of expression, and ways of being human in our globe are all components of tolerance. Knowledge, openness, and communication foster it.

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The primary objective of a particular mutual fund is the payment of dividends, regardless of the market's current state. Capital growth is a secondary objective. Which of the following industry groups would be appropriate for the fund's portfolio? A) Aerospace. B) Computer technology. C) Consumer appliances. D) Public utilities.

Answers

Option d is Correct. Groups from the public utilities sector would be appropriate for the portfolio of the fund.

Regardless of the situation of the market at the time, a specific mutual fund's main goal is to provide dividends. Growth in the capital is a secondary goal. They are financial tools that amass funds from many people who have similar financial objectives.
The combined funds are then invested in a variety of financial products, including corporate and government bonds, listed company stocks, shares, and other money market instruments. Hybrid funds invest a significant amount of their capital in equity over the long run. The goal of the retirement fund is to provide long-term income and capital appreciation in order to help retirees accumulate wealth.

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Individuals who are working part-time while seeking full-time employment are classified as O Phantom unemployed. O Discouraged workers. O Unemployed O Underemployed

Answers

The correct answer to the given question about the person who is working part-time and searching for a full-time job is option d) Underemployed.

When a person doesn't work full time or accepts a job that doesn't correspond to their actual skills and financial requirements, they are considered to be underemployed. That instance, their job doesn't fully utilize their degree and skills, or it just offers part-time employment. The total number of persons in an economy who are involuntarily working in low-skill and low-paying occupations or only part-time because they are unable to find full-time positions that utilize their skills is known as underemployment. The U.S. government counts both underemployment and unemployment in its reports to give a more accurate picture of the state of the labor market. Many different things, including business cycles and economic recessions, can contribute to underemployment.

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How are individuals and economies similar?

Answers

Individuals and economies are similar in that they both involve the exchange of goods and services for money. Both individuals and economies must manage their resources and make decisions about how to allocate them in order to maximize their benefit.

What is Individuals and economies?

Individuals and economies refer to the collective economic activities of people in a certain region or area. It encompasses the entire economic output of a region or area, including both production and consumption of goods and services. Individuals and economies are interrelated, as the economic activities of individuals can impact the economy as a whole. For example, if an individual purchases a product or service, it helps to stimulate the economy by creating jobs, increasing wages, and increasing the demand for goods and services. This, in turn, helps to increase the overall economic growth of the area. Additionally, the economic activities of individuals can also influence the economic policies of governments and other organizations.

Both individuals and economies must also manage risk and uncertainty in order to remain successful. Finally, both individuals and economies must be able to adapt to changing conditions in order to remain competitive.

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Whole Foods uses its wholesome and organic selection of products, unique store design, and local ambience to avoid direct competition with large supermarket chains, which is an example of ________ positioning. Multiple Choice head-to-head niche differentiation competitive holistic

Answers

Whole Foods uses its wholesome and organic selection of products, unique store design to avoid direct competition with large supermarket chains, which is an example of c) differentiation positioning.

Differentiation and positioning are intertwined in significant ways. Effective positioning for a product or service is based on the distinctive features or traits that, in the eyes of the target market, set it apart from the competition.

Marketing professionals work to develop a desired position for a good or service in the market rather than waiting for it to be generated by consumers, the general public, or competitors. Positioning and differentiation are strategic actions.

An effective value proposition for the market that states, "This is the compelling reason the target segment should buy the product," is the outcome of positioning.

Key components of the marketing mix are shaped by positioning, including which features are most important for differentiating a product or service, what messages to convey about the offering, how to price it in comparison to rivals, and the potential contribution of distribution to customer satisfaction.

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Flax purchased $5,000 in equipment during Year 4. Flax allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. What amounts should Flax report in its Statement of Cash Flows for the year ended December 31, Year 4, for cash paid for income taxes

Answers

For the year ended December 31, Year 4, cash paid for items to be sold is $226,500. This includes cash paid for income taxes.

Which of the following should be included in the statement of cash flows quizlet?

On the statement of cash flows, under the heading "Investing Activities," should be listed the purchase of equipment using a six-month note. The proper order to disclose financial activities is financing, operating, and investing when creating a statement of cash flows.

As noted and displayed in bold type in the question above, the cost of goods sold is $250,000.

Cash for cost of goods sold: $250,000 - $16,000 - $7,500 = $226,500

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Franchising is a popular way to grow. Subway has about 42,000 franchisees that pay 12.5% of their annual store
revenue (417 000 average) to Subway. About how much does Subway collect in franchise fees?

Answers

Answer:

$2,189,250,000

Explanation:

I just finished the quiz

Franchising is a popular way to grow. Subway has about 42,000 franchisees that pay 12.5% of their annual store revenue (417 000 average) to Subway. $2,189,250,000 is much does Subway collect in franchise fees.

What is Franchising?

The term franchising refers to the expansion of the business. The franchising was the marketing strategy to the sold the goods and the services are the large level. It was the adopted the organization as a strategy was the owner licenses its operations.

Determine the given amount are:

Total number of subway franchisees = 42,000Average annual store revenue = $417,000Total paying percentage of franchisees = 12.5%

At 12.5% of average revenue = (417000 × 12.5) ÷ 100

At 12.5% of average revenue = 5212500 ÷ 100

At 12.5% of average revenue = $52,125

Total subway collection in franchise fee = total number of franchisees × amount of fees per franchises

Total subway collection in franchise fee = 42,000 × 52,125

Total subway collection in franchise fee = $2,189,250,000

As a result, the significance of the franchising are the aforementioned.

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Which of the following may cause a favorable sales volume variance of the revenues? O Actual sales in dollars are greater than the master budget sales in dollars. O The flexible budget sales in dollars are greater than the static budget sales in dollars. O Actual sales in dollars are less than the static budget sales in dollars. O Actual net income for the subunit is greater than budgeted net income.

Answers

The correct answer to the given question about favorable sales of revenue is option B) The flexible budget sales in dollars are greater than the static budget sales in dollars.

An example of a budget that includes predicted values for inputs and outputs that are thought of before the period in question begins is a static budget. A static budget, which is an estimate of revenues and expenses for a specific period, remains constant despite changes in sales and production amounts. The figures from static budgets can, however, be very different from the real results as compared to those that are discovered after the fact. Accountants, finance experts, and management teams of businesses utilize static budgets to assess the financial success of a company over time. A flexible budget is one that is based on various sales volumes. A flexible budget is used to modify the static budget for each anticipated level of production. This adaptability allows management to anticipate how the budgeted numbers will change when the sales volume varies.

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