Frank Patterson Owns a Chain of Barbershops That Started near Atlanta

question 61

Multiple Choice

Frank Patterson owns a chain of barbershops that started near Atlanta and has expanded into northern Florida, South Carolina, North Carolina, and West Virginia. Frank is growing his company via a strategy of:

• A) geographic expansion
• B) market penetration
• C) product line extension
• D) outsourcing
• E) licensing

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Definitions:

Planned Activities

Predefined actions or strategies set by an organization in pursuit of its objectives.

Accounting Period

A specific and standard duration of time (such as a month, quarter, or year) during which accounting records are kept and financial statements are prepared.

Immaterial Variances

Small or insignificant differences between budgeted and actual figures that are not considered important enough to analyze in detail.

Fixed Overhead Variance

The difference between actual fixed overhead costs and the expected (or budgeted) fixed overhead costs.