La Quinta Inns Has a Competitive Edge Over Its Rivals

question 120

Multiple Choice

La Quinta Inns has a competitive edge over its rivals because it:

• A) uses regression analysis to determine which variables most influence profitability.
• B) has better television advertisements.
• C) picks larger locations than its rivals.
• D) builds only along interstate highways.
• E) consistently receives four-star ratings for its inns.

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Definitions:

Accumulated Depreciation

Accumulated depreciation is the total amount of depreciation expense that has been recorded against a company's assets over time.

Expense Account

An account in financial accounting that represents costs incurred by a company during a period, not directly tied to the production of goods or services.

Equipment Account

An account where the cost of purchased equipment is recorded, reflecting the total value of equipment owned by a business.

Capitalized

Refers to recording an expenditure or cost as an asset on the balance sheet, rather than an expense, typically to spread out the cost over its useful life.