Which of the Following Is a Benefit of Buying a Franchise

question 9

Multiple Choice

Which of the following is a benefit of buying a franchise?

• A) The franchisee can identify his or her market niche.
• B) The franchisee can select his or her own sales activities.
• C) The franchiser brings proven methods of operation to aid the franchisee.
• D) The franchiser gives complete independence to run the franchise.

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Definitions:

Direct Labor-Hours

The total hours worked by employees directly involved in the production of goods or services.

Machine-Hours

A measure of the amount of time a machine is operated, used in allocating manufacturing costs based on machine usage.

Underapplied Overhead

A condition where the allocated manufacturing overhead costs are less than the actual overhead costs incurred.

Overapplied Overhead

A situation where the allocated manufacturing overhead cost exceeds the actual overhead incurred.