White Company budgeted for $200,000 of fixed overhead cost and volume of 40,000 units. During the year, the company produced and sold 39,000 units and spent $210,000 on fixed overhead.The fixed overhead cost spending variance is:
A. $5,000 favorable.
B. $10,000 unfavorable.
C. $5,000 unfavorable.
D. $10,000 favorable.
Answer: B
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People can acquire legitimate power in four ways, what are they? Provide a single example for each.
What will be an ideal response?
Selling price = $80 per unit Variable cost = $30 per unit Units = 20,000 Fixed costs = $240,000 This company is considering a 20% drop in selling price that they believe will raise units sold by 20%. All other costs stay the same. How much will income go up or down if they make this change?
A) $184,000 less income B) $320,000 less income C) $20,000 more income D) $40,000 more income
Scenario 16.2 Use the following to answer the questions. The State Farm Group includes several companies. Probably the most well-known company in the group is the State Farm Insurance company, the largest auto and home insurer in the United States. State Farm Insurance provides protection for approximately 78 million policies on auto, fire, life, and health services. It is also a leading insurer of homes and autos in Canada. Another company in the State Farm group is the State Farm Bank, which was opened in 2000, beginning State Farm's entry into the financial services field. However, the State Farm Bank is not a traditional bank, in that it has no branch offices and its services are provided through State Farm agents, a call center, the mail, and on the Internet. It currently serves
over 1.9 million bank accounts. Refer to Scenario 16.2. If State Farm Bank decided that it wanted to increase its number of bank customers by 10% in the coming year, it would most likely use the ____ approach to advertising allocation. A. arbitrary B. competition-matching C. objective-and-task D. percent-of-sales E. percent-of-customer
Shopping bots:
A. encourage a more creative use of advertising B. link manufacturers, suppliers, and customers C. create opportunities for prestige pricing D. provide a means for comparison shopping E. create inelastic demand