Which of the Following Is Not an Advantage When Purchasing

question 17

Multiple Choice

Which of the following is not an advantage when purchasing a franchise?

• A) Obtain a proven concept
• B) National name recognition
• C) National advertising support
• D) Sensitivity to menu items for local clientele

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Definitions:

Physical Measures Method

An approach to cost allocation or performance measurement that relies on direct, quantifiable units such as hours, kilograms, or meters.

Relative Sales Value Method

An approach used in joint cost allocation, distributing costs among products based on their relative sales values at the split-off point.

Constant Gross Margin Percentage

A pricing strategy where the gross margin percentage remains unchanged regardless of changes in product costs.

Fixed Costs

Expenses that do not change with the level of production or business activity within a certain scale or period.