Which of the Following Is a Fee for Advertising and Promotional

question 5

Multiple Choice

Which of the following is a fee for advertising and promotional campaigns and administrative costs billed to franchisees either as a flat monthly or annual fee or as a percentage of gross sales?

• A) assessment fee
• B) initial license fee
• C) royalty fee
• D) lease fee

---

Definitions:

Factory Overhead

All manufacturing costs that are not directly associated with the production of goods, including indirect materials, labor, and other expenses.

Variable Factory Overhead

Expenses within a factory that fluctuate with production volume, such as utilities or materials used in production.

Units Produced

The total number of units of product created by a company during a specific period.

Budgeted Production Units

The number of units a company plans to produce over a specific period as estimated during the budgeting process.