A Major Advantage of Ownership Versus Leasing Is _____

question 10

Multiple Choice

A major advantage of ownership versus leasing is _____.

• A)no difficulty in lease renewals
• B)lower capital requirements
• C)the long-term commitment to a given location
• D)the ability to purchase locations in major shopping centers

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Definitions:

Controllable Variance

The portion of variance in cost or revenue that can be directly managed or influenced by actions of the management.

Standard Factory Overhead Rate

A predetermined rate used to allocate expected overhead costs to individual units of product based on a standard cost system.

Machine Hour

A unit of measure representing one hour of work or operation by a machine, used in allocating manufacturing costs.

Normal Capacity

The average production or performance level achievable under normal conditions by a business over a specific period.