Which Factor Would NOT Change the Demand for Sea Kayak

question 152

Multiple Choice

Which factor would NOT change the demand for sea kayak tours?

• A) news reports of whales in the harbor
• B) a decrease in the price of a sea kayak tour
• C) an increase in the price of bicycle tours, a substitute activity
• D) the onset of sunny summer beach weather

Master the use of flexible budgeting for performance evaluation and management control.

Understand the concept of a flexible budget and its purpose in managerial accounting.

Recognize how fixed and variable costs behave within a flexible budget as activity levels change.

Calculate total expenses and net operating income in a flexible budget under different scenarios.

---

Definitions:

GAAP

Generally Accepted Accounting Principles, which are a set of accounting standards and practices used to prepare financial statements.

Financial Instruments

Contracts that give rise to both a financial asset of one entity and a financial liability or equity instrument of another entity.

Discounted Note

A promissory note that is sold or issued for less than its face value and upon maturity pays out its full face value, effectively generating interest for the holder.