Active customer contact and personalized attention can lower cost to the customer by:
A) increasing the capital intensity.
B) trading fixed costs for an equivalent variable cost.
C) substituting customer efforts for those of the service provider.
D) lowering the level of technology involved.
C
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Informative executions work best for high-involvement products
Indicate whether the statement is true or false
Wu Chen frequently travels to Caracas, Venezuela, where the only hotel he will stay at is the Crown Prince Hotel. His level of brand familiarity toward the Crown Prince Hotel is
A. brand insistence. B. brand rejection. C. brand awareness. D. brand recognition. E. brand familiarity.
Wadding Corporation applies manufacturing overhead to products on the basis of standard machine-hours. For the most recent month, the company based its budget on 4100 machine-hours. Budgeted and actual overhead costs for the month appear below: Original Budget Based on 4100 Machine-Hours-Actual CostsVariable overhead costs: Supplies$11,510? $12,330? Indirect labor 33,180? 35,300? Fixed overhead costs: Supervision 20,200? 19,840? Utilities 6400? 6320? Factory depreciation 7400? 7710? Total overhead cost$78,690? $81,500? The company actually worked 4220 machine-hours during the month. The standard hours allowed for the actual output were 4210 machine-hours for the month. What was the overall variable overhead efficiency
variance for the month? A. $610 Favorable B. $717 Favorable C. $109 Unfavorable D. $230 Favorable
Franklin Company obtained a $160,000 line of credit from State Bank on January 1, Year 1. The company agreed to accept a variable interest rate that was set at 2% above the bank's prime lending rate. The bank's prime rate of interest and the amounts borrowed or repaid during the first three months of Year 1 are shown in the following table. Assume that Franklin borrows or repays on the first day of each month. Amt Borrowed(Repaid) Prime Rate forthe Month1-Jan$40,000 4.0% 1-Feb (10,000) 4.5% 1-Mar 40,000 5.0% What is the amount of interest expense recognized in March?
A. $232 B. $292 C. $408 D. $262