Providing a Source of Managerial and Technical Assistance Is an Advantage

question 82

Multiple Choice

Providing a source of managerial and technical assistance is an advantage to the franchisee that might not be available to an independent business owner.This is called

• A) An opportunity to learn
• B) Market expertise
• C) Professional guidance
• D) Controlled expansion

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Definitions:

Mixed Cost

Expenses that have both fixed and variable components, varying with the level of activity but not in direct proportion.

High-low Method

A technique used in cost accounting to estimate variable and fixed costs based on the highest and lowest levels of activity.

Fixed Manufacturing Cost

Costs that do not change with the level of production, such as rent, salaries, and insurance.

Fixed Manufacturing Cost

Expenses that do not change with the level of production, such as rent, salaries, and equipment depreciation in a manufacturing setting.