Explain Franchising with Examples

question 89

Essay

Explain franchising with examples.Mention the advantages and disadvantages associated with franchising.How is franchising different from licensing?

---

Definitions:

Unadjusted Cost

Refers to the original cost of an asset or expenditure without any adjustments for depreciation, taxation, or any other modifications.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including material and labor costs.

Finished Goods Inventory

Finished goods available for sale but still held within the company's inventory.

Overapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead exceeds the actual manufacturing overhead incurred.