A major disadvantage of the ________ approach to budgeting is that firms who allocate a random dollar amount to the promotion mix guarantee virtually nothing except that the money will be spent.
Fill in the blank(s) with the appropriate word(s).
affordable
The affordable method is a promotion mix budgeting strategy in which firms set their promotion budget based on what they believe they can afford.
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The business risk faced by an investor when investing in a company is related to:
A. changes in the economy. B. investor behavior in the market. C. the book value of a firm’s assets. D. the firm’s ability to meet operating expenses in a timely manner. E. security price fluctuations.
What amount will be shown for payments to suppliers for operating expenses? (Accounts Payable are for purchases of merchandise inventory only, and Accrued Liabilities relate to operating expenses.)
Outdoor Paints Company uses the direct method for preparing its statement of cash flow. Outdoor reports the following information regarding 2019:
From the income statement:
Sales Revenues, $266,000
Cost of Goods Sold, $215,000
Operating Expenses, $37,000
A) $39,900
B) $37,000
C) $35,500
D) $41,400
You should use direct quotes
A) Sparingly B) Often C) One in each paragraph D) Only in the conclusion
Valera Corporation makes a product with the following standards for labor and variable overhead: Standard Quantity or HoursStandard Price or RateStandard Cost Per UnitDirect labor 0.4hours$21.00per hour$8.40 Variable overhead 0.4hours$6.00per hour$2.40 ?The company budgeted for production of 5,300 units in July, but actual production was 5,400 units. The company used 2,130 direct labor-hours to produce this output. The actual variable overhead rate was $6.10 per hour. The company applies variable overhead on the basis of direct labor-hours.The variable overhead rate variance for July is:
A. $213 U B. $216 U C. $213 F D. $216 F