Which of the Following Is True of Netflix Streaming

question 63

Multiple Choice

Which of the following is true of Netflix streaming?

• A) Its content acquisition cost is fixed.
• B) Its competitors have been mostly vanquished.
• C) It has little appeal for new entrants.
• D) It allows for unlimited monthly subscription to all content.
• E) It provides very little opportunity for innovation.

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Definitions:

Labour Efficiency Variance

The discrepancy between the actual hours worked and the standard hours expected to produce a certain level of output.

Variable Overhead

Costs that change in proportion with production volume or business activity levels, such as utilities or raw materials.

Labour Rate Variance

Labour rate variance is the difference between the actual hourly wage paid to workers and the standard wage rate expected, indicating variations in labor cost.

Material Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit.