Which of the Following Businesses Is Most Likely to Consider

question 98

Multiple Choice

Which of the following businesses is most likely to consider proximity to raw materials when locating a new manufacturing plant?

• A) a manufacturer of eyeglasses
• B) a light bulb manufacturer
• C) a company that cans vegetables for a supermarket chain
• D) a computer manufacturer

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Definitions:

Static Planning Budget

A budget based on a single level of output, not adjusted for changes in activity levels.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing for better budget-to-actual comparisons.

Favorable Spending Variance

A situation in which actual spending is less than the budgeted or projected amount, indicating cost efficiency.

Actual Cost

The real cost incurred in the production of goods or services, including all direct and indirect expenses.