Answer the Following Questions Using the Information Below

question 115

Multiple Choice

Answer the following questions using the information below:
Southwestern College is planning to hold a fund raising banquet at one of the local country clubs. It has two options for the banquet:

Southwestern College has budgeted $1,800 for administrative and marketing expenses. It plans to hire a band which will cost another $800. Tickets are expected to be $30 per person. Local business supporters will donate any other items required for the event.
-Which option provides the greatest degree of operating leverage if 600 people attend?

• A) Option one
• B) Option two
• C) Both options provide equal degrees of operating leverage.
• D) Operating leverage is indeterminable.

Distinguish between different types of variances (e.g., spending, activity, and overall revenue and spending variances).

Identify the factors that contribute to favorable (F) and unfavorable (U) variances.

Apply budgeting concepts to both manufacturing and service industry contexts.

Assess the financial performance of a business using variance analysis.

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Definitions:

One-word Stage

A developmental phase in early childhood where children begin to communicate with single words.

Syntactic Stage

The phase in language development in which children begin to understand and use the rules of sentence structure and grammar.

Speech Sounds

The basic units of sound (phonemes) used in languages to encode and communicate meanings.

Syntactic Stage

A phase in language development in which a child begins to grasp grammatical structures and rules.